KENYA AIRWAYS Q4 RESULTS SHOW SIGNIFICANT GROWTH
Information received overnight from Nairobi indicates that Kenya Airways recorded a traffic growth of over 15 percent in Quarter 4 of 2011, substantially better than feared when the stories of the Somalia conflict began to emerge and tourism braced itself for some tough weeks ahead.
Not so according to the statistics now released, which show a 15.4 percent growth in international passengers during the last quarter of last year while on the domestic front passenger numbers grew by an astonishing 26 percent margin in the period under review.
Cargo uplifts too rose by over 6 percent, showing a sound demand growth for shipments of cargo by air, both North- and South bound.
The positive data will boost Kenya Airways intended major new shares issue as financial analysts were somewhat jittery since the dismal IPO by Tanzanias Precision Air, where only just over 42 percent of the shares were snapped up, which however needs to be seen in the context of a number of actions by the Tanzanian government perceived as lukewarm if not outright unhelpful, while at the same time market favourite Tanzania Breweries was also in the same narrow financial market aimed at institutional and key private investors.
Watch this space as the dates for the issue of new shares is now thought to be announced very shortly, and the financial market reactions to it in terms of share price and prospects.