Kenya Airways Net Loss For Nine-Month Period Stood at KES 6.1Bn

Kenya Airways has registered 6.1 billion shillings net loss for the nine-month period ending December 2017.

The airline which has embarked on a massive restructuring program is banking on the improved operating efficiency to cut its losses this year.

The operating profit during the period under review stood at 1.3 billion shillings with the long electioneering period being blamed for the 20 percent drop in the number of domestic flights.

The 12-month financial year of 2016 had seen profits close at 897 million shillings.

The passenger numbers stood at 3.4 million during the period under review as opposed to 4.46 million in the previous year’s 12-month period for 4.46 in previous

The company’s overheads for the 9-month period registered 15.5 billion shillings as opposed to 24.5 billion shillings in the prior year ended 31 March 2017.

Owing to market capacity pressure and currency fluctuations, the yield per revenue passenger kilometer declined by 6.5 percent for the 9-month period.

There was an improvement in cabin factor represented by 76.2 percent compared to the prior year 12-month period, which was 72.3 percent.

The fleet costs for the 2017 financial year recorded 10.6 billion shillings compared to 15.5 billion shillings the previous year.

Although reporting an improved performance, the airline operated in a challenging environment. During the period, fuel price continued on an upward trend closing at 62 US dollars per barrel hence increasing the Group’s operating costs by 9 percent.

“2018 will be a difficult year for us with stiff competition by other players in the industry and volatility in global oil prices,” Mr. Mikosz, the airline’s CEO said.

Kenya Airways is currently changing its financial year calendar to match the calendar year.

“We are focused, from today henceforth, on an operational turn around that will provide a stable base for long-term growth through an optimized network that creates more connections through our hub in Nairobi, drive efficiency in-order to reduce overall costs, as well as focus on improved service quality and delivery,” said Michael Joseph, Chairman of the Kenya Airways group.