Reasons Why Kenya Airways Lost Ksh.7.59B As net loss

Steve Oke Chapchap Market April 30, 2019 No Comments

Reasons Why Kenya Airways Lost Ksh.7.59B As net loss
Spread the love

Kenya Airways reports a Ksh.7.59B net loss

By Kepha Muiruri For Citizen Digital[Courtesy]

Kenya Airways reports a Ksh.7.59B net loss
In Summary
This represented in an increase in operating costs which soared to Ksh. 114.9 billion from Ksh. 106.2 billion in 2017
Fuel costings which represent over 40 percent of operating revenues for instance rose by an average of 30 percent during the year while the carrier invested in a number of new destinations including direct flights to New York in late October.
The performance by the struggling airline is reflective of ongoing loss consolidation by the carrier having further cut its losses in 2017 from highs of Ksh.26.2 billion and Ksh. 25.7 billion in 2016 and 2015 respectively.

National carrier Kenya Airways has announced a Ksh. 7.6 billion net loss for the period ending December 31,2018.




The booked loss is however an improvement from the Ksh.6.1 billion loss posted in 9 months between March and December in 2017 which stretches to Ksh.9.4 billion when adjusted to a full year result.

In spite of the improved balance sheet, KQ posted an operating loss of Ksh. 683 million from a profit of Ksh.518 million shillings as new route investments and rising fuel costs ate into earnings.

-
- -

This represented in an increase in operating costs which soared to Ksh. 114.9 billion from Ksh. 106.2 billion in 2017

Fuel costings which represent over 40 percent of operating revenues for instance rose by an average of 30 percent during the year while the carrier invested in a number of new destinations including direct flights to New York in late October.

The performance by the struggling airline is reflective of ongoing loss consolidation by the carrier having further cut its losses in 2017 from highs of Ksh.26.2 billion and Ksh. 25.7 billion in 2016 and 2015 respectively.



“What we needed to do in 2018 was to consolidate and hence it was a good year for us. I forsee going forward that 2019 will be a challenging year for us but we are excited of what the year could be, noted Kenya Airways Chairman Michael Joseph

-
- -


Spread the love
Tags :