Kenya Airways records a further Sh4b half-year loss
Kenya Airways has reported a Sh4b loss after tax for the first six months of 2018 from Sh5.6 billion recorded same period last year. Chief Executive Officer Sebastian Mikosz has attributed the loss to fuel price volatility which he says is the main challenge.
The result announced yesterday, however, show the airline recorded a 30.8 percent improvement in pre-tax results for the six month period ended June 30, 2018. This improvement according to the Airline has been attributed to the increase in passenger numbers and cargo uplift.
Passenger numbers increased by 6.6 percent to 2.3 million, while cargo uplift increased by 13 percent to 31,973 tonnes over the same period last year.
The cabin factor increased by 2.8 points to 75.9 percent. Revenue increased by 3.1 percent due to increased passenger traffic and overall yield improvement. The direct operating costs increased by 13.9 percent due to increased pressure on global fuel prices.
The fleet costs however reduced by 2.2 percent attributed to the fleet rationalization completed in November 2017.
Overall, the Group’s results improved by 30.8 percent from a pre-tax loss of Kshs 5,771 million in 2017 to Kshs 3,992 million for the period ended 30 June 2018.
“The business has remained resilient and is focused on delivering solid results. We continue to optimize the network to create more connections through our hub in Nairobi and in turn increase efficiency in order to reduce overall costs and return to profitability,” said Michael Joseph, Chairman Kenya Airways.
The Airline says it is focusing on the expansion of its network in a bid to cater for the growing needs of passengers and to strengthen its footprint in Africa.
During the period, Kenya Airways launched flights to Mauritius and non-stop flights to Cape Town, South Africa. The airline is in final preparations for its maiden non-stop flights to New York on October 28, 2018.
During the Investors briefing held at the Intercontinental Hotel in Nairobi, the Chairman said that Kenya Airways was committed to enhancing its service delivery across all touch points with the aim of making it more authentic and true to its brand proposition.