Kenya Airways has joined a list of many other companies that have issued profit warnings for the financial year 2019.
KQ, through a statement to the public and shareholders, says it expects a drop in profits by more than 25 percent in the financial year ending December 31.
The board at KQ says that despite the airline experiencing a growth in revenue during the year, there was an intensified competition that impacted on the overall earnings.
Due to the “intensified competition,” Kenya Airways says it was forced to make changes on its pricing model so as to keep up with the competition from other players.
Kenya Airways has been going through financial tribulations ever since it made a loss of more than 26 billion shillings.
Acting CEO
Kenya Airways board named Allan Kilavuka as the acting Chief Executive Officer (CEO) of the ailing national airline “until a substantive boss is recruited.”
Mr. Kilavuka is the current CEO of the low-cost carrier Jambojet and will continue holding his current position according to the board.
“Allan will also continue his role as Chief Executive Officer of Jambojet during the interim period of recruitment,” read a statement from KQ.
Mr. Kilavuka’s appointment as the acting CEO for KQ will take effect starting January 1, 2020, and is expected to hold the position as the board looks for another CEO.