Kenya Airways reports €34 million loss

Kenya Airways has reported a Sh4 billion (€34 million) net loss, compared to the Sh5.6bn (€47.6m) recorded for the same period last year.

The airline’s CEO, Sebastien Mikosz has singled out the price of fuel and its volatility as the carrier’s main challenge.

During a news conference, Mikosz said: “Our loss before tax is down by 30%. We keep slowly but steadily improving.”

The carrier, now 7.8% owned by Air France KLM, said that its revenues managed to rise by 3%, to Sh52.19bn (€435m), however total operating costs increased by 4% to Sh53.22bn (€452) due to rising fuel prices.

However, the airline reported that passenger numbers have increased by 7% for the first half of the year to 2.3 million.

The airline’s improved performance has been aided by an improving business climate in Kenya.

Basheena Bhoola, Associate Director at PwC South Africa, said in 2017 there was a period of stability and security in Kenya, “However, the election created uncertainty within the market. But we (PwC) saw a rebound in December.”

According to a recent report by PwC, Kenya’s industry can expect an 8.8% increase in arrivals during the course of 2018.

source: Tourism Update