KENYA AIRWAYS POSTS 4 BILLION SHILLINGS LOSS AS CHAIRMAN UPTALKS THE AIRLINE’S FUTURE
(Posted 29th August 2018)
The loss incurred by Kenya Airways during the first half of the financial year, i.e. from 01st of January to the 30th of June, still stands at a whopping 4.035 billion Kenya Shillings, however down from the same period a year ago when it still stood at 5.668 billion Kenya Shillings.
Chairman Michael Joseph, while speaking at the InterContinental Hotel in Nairobi to investors earlier this morning, preferred not to dwell too much on the loss as he tried to paint a picture of a brighter future, something tortured shareholders have by now heard once too often however.
Whoever thought that the change of regime at Kenya Airways would result in a miracle cure, latest by now has to realize that this is not going to happen in the short run.
While the total income of Kenya Airways improved to KShs 52.193 billion, up from the same period a year ago of KShs 50.601 billion did the operating expenses increase to KShs 53.218 billion, up from 51.333 billion last year and over a billion Shillings more than the total income. The scapegoat named by company officials was predictably the increase in expenses linked to a rise in global fuel prices with questions now asked what form and level of fuel hedging the airline had put into place to cushion the effect of rising crude oil prices.
Cabin load-factors reached almost 76 percent while on time performance stood just two points over 80 percent, one of the reasons why the airline, through social media platforms, continues to incur the wrath of affected passengers.
KQ uplifted around 2.3 million passengers during the period in question, some 6.6 percent more than a year ago.
CEO Mikosz seems to bank on the success of the soon to be launched daily flights to New York but only time will tell how this will impact on the airline’s bottom line, positively or negatively.