The national carrier's cargo tonnage dropped 14.6 per cent to Sh56.8 billion due to the phasing out of its wide body aircraft, KQ's acting finance director Dick Murianki said.
It's turnover dropped 8.5 per cent to Sh106 billion.
Kenya Airways posted a Sh26.2 billion net loss in 2016, preceded by a Sh25.7 billion loss the previous year, when Mr Ngunze took over at the helm.
Kenya Airways (KQ) #ticker:KQ has cut its net loss for the year ending March by 60.9 per cent to Sh10.2 billion compared to Sh26.2 billion last year.
The national carrier, referred to as KQ by its international code, saw its profitability improve despite its revenues dipping 8.5 per cent to Sh106 billion on lower yields per passenger and reduction in cargo capacity.
Despite a reduction in capacity, passenger numbers grew by 5.4 per cent to 4.5 million in a record for the airline, outgoing chief executive officer Mbuvi Ngunze said while announcing the results on Thursday.
Mr Ngunze attributed this growth to addition of more routes and increased frequencies on existing routes.
The carrier's cargo tonnage dropped 14.6 per cent to Sh56.8 billion due to the phasing out of its wide body aircraft, KQ's acting finance director Dick Murianki said.
Mr Ngunze expressed optimism on the future of the national carrier, saying it was now on the path to recovery.
Kenya Airways posted a Sh26.2 billion net loss in 2016, preceded by a Sh25.7 billion loss the previous year, when Mr Ngunze took over at the helm.
"A lot of people had buried KQ two years ago, but today it is stronger than ever. The turnaround is happening," he said as he attributed the cutting of losses to the turnaround plan referred to as Operation Pride.
"Even as I leave KQ, the team I leave behind is focused on the Operation Pride turnaround plan," he said.
The strategy, which involves initiatives such as balance sheet restructuring, sale and leasing of aircraft, the sale of land and retrenchment , is meant to pull the national carrier from the red.
“Operation Pride is now our way of doing business. Today, we operate a leaner and more efficient airline and I salute the over 4,000 employees for their dedication and hard work,” he said.
He is set to be replaced by Polish national Sebastian Mikosz as the chief executive next Thursday.
