Kenya Airways #ticker:KQ has reported a Sh2.61 billion loss on the sub-lease of its aircraft, indicating the heavy burden that the national carrier continues to shoulder from previous years of rapid expansion that was not matched by proportionate growth in customer demand.
KQ, in its freshly released annual report for the year ended March 2017, says aircraft recently leased out to reduce the airline’s over-capacity were yielding less rentals than the cost charged by the primary owners from whom it bought the planes.
