Kenya Airways reports 4.8b half-year loss

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Kenya Airways reports 4.8b half-year loss

Tuesday November 06 2012

Kenya Airways (KQ) has reported a net loss of Sh4.8 billion in the first half of the year ending September 30, due to a drop in passenger numbers and high fuel costs.

During this period, the airline's turnover dropped from Sh54 billion to Sh49 billion.

The decline was mainly due to weakening demands in the passenger business as well as sustained pressure on yields.

Passenger traffic in the second quarter to September was unchanged compared to last year, remaining at just over one million as lower traffic on European, Africa, and domestic routes offset the 16.5 per cent growth in Asian routes.

Costs incurred during this period include the Sh826 million spent during the recent restructuring programme that saw 599 people sent home.

Kenya Airways has also issued a profit warning for the full year as earnings are projected to be below a quarter of last year's profit. The airline made Sh1.7 billion net profit in the full year to March, a 46.7 per cent drop from previous year.

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