KENYA AIRWYAS FULL YEAR PROFIT DROPS AMID RISING OPERATING COSTS
Kenya Airway has now released the full financial year results for 2011/12 and while the upside is continued profitability, and a sharp rise in revenues and passengers carried, the downside is a sharply reduced profit compared with the 2010/11 financial year.
This trend translates to reduced earnings per share from 7.65 KShs the previous year to only 3.58 in the just concluded year, attributed to a rise in fuel cost and labour cost, the latter sustained after having to prevent a strike threat by cabin crew and other staff over terms and conditions, leaving the profit columns drained of substance..
Passengers carried rose to about 3.6 million compared to only 3.1 million a year earlier, which speaks for the impact of a sustained rollout of new routes and added frequencies in core markets and earnings catapulted by over 26 percent to 107.9 billion KShs. A higher cabin load-factor of 71.7 percent was the result of the added numbers up from last years 69.2. However profits reduced from about 3.5 billion KShs to only 1.66 billion KShs for the 2011/12 year, showing just how great an impact a softening European market and the rise in fuel cost it meant for the airlines profitability.
Also announced was the date of the Annual General Meeting of shareholders, due for the 27th September 2012 at a venue to be announced but likely once again at the Bomas of Kenya to cater for the presence of as many shareholders as possible. Full details of the financial statement and comments made by board and management are available via www.kenya-airways.com