FINANCIAL POSITION WORSENING AS KENYA AIRWAYS ISSUES NEW PROFIT WARNING
(Posted 18th December 2019)
As outgoing CEO Sebastian Mikosz is packing his bags to leave Kenya Airways, has the Board of Directors of the airline just notified the Nairobi Securities Exchange / Capital Markets Authority of another profit warning, as is a mandatory requirement under the Capital Markets Act.
The admission that earnings will be some 25 percent or a quarter lower than for the past financial year 2018, no doubt once again resulting in a major red figure on the bottom of the balance sheet, suggests a much greater loss than the airline reported last year when Kenya Airways recorded losses of more than 7.59 billion Kenya Shillings.
The airline’s board is also complaining about eroded profitability in the face of growing revenues, largely as a result of other airlines in the region increasing their market share at the expense of Kenya Airways.
This has multiple reasons, ticket pricing being one of them and of course a series of delays and flight cancellations in 2019 which drove passengers into the open arms of competing carriers like Uganda Airlines, RwandAir, Air Tanzania and others flying into Nairobi.
Results of the financial year 2019 which ends on the 31st of December are expected to be announced in late April when the customary shareholder briefing takes place.