Kenya Airways chairman Michael Joseph (left) and CEO Sebastian Mikosz during the release of the firm's half-year results on November 17, 2017. PHOTO | SALATON NJAU | NMG
The national carrier's revenue decreased 0.4 per cent to Sh54.518 billion compared with Sh54.748 billion posted during a similar period last year.
KQ, as the airline is known by its international code, recorded an improvement in passenger numbers by 3.3 per cent to 2.3 million in the period.
The airline has also filed an application to the Competition Authority of Kenya (CAK) to add Air France to its existing agreement with KLM.
Kenya Airways #ticker:KQ has announced a Sh3.8 billion net loss for the six months to September, representing a 20.5 per cent improvement from last year's performance on reduced costs.
The national carrier, known as KQ by its international code, says its operating costs improved to Sh53.075 billion from Sh53.799 billion posted during a similar period last year.
Other costs went down 8.1 per cent to Sh5.2 billion.
The reduction in costs made up for a flat top-line as KQ's revenue reduced 0.4 per cent to close the period at Sh54.518 billion.
"Kenya Airways is on a continuous improvement trajectory on its way towards returning to profitability," said Sebastian Mikosz, KQ's chief executive.
"We have kept our fleet costs in check. Going forward, we look to grow our routes strategically. We shall be extremely cautious about our cash spending."
Negative equity
The national carrier's half-year loss has worsened its negative equity position to Sh48.18 billion, compared to the Sh44.915 posted during a similar period last year.
KQ's passenger numbers during the six months to September increased 3.3 per cent to 2.3 million.
Its intra-Africa traffic improved 6.7 per cent during the period, but election had a dampening effect towards the end of the period under review.
Michael Joseph, the airline’s chairman, said the just concluded restructuring has given the business a lifeline.
"The capital optimisation is done. It was a decision based on compromise. As KQ chairman, I will be managing a bunch of bankers and government people. Will that be easy? I don't know," he said.
"We're not going to do stupid things going forward. We'll learn from our mistakes. Our key focus is growing sales and keeping a lid on costs. We have a good team now."
New York flights
Mr Mikosz said they were paying special attention to their strategic plan to launch a flight to New York next year.
"This will be our longest flight when launched. This route will cost and bring us millions of dollars. As much as we are determined to launch the route in the next 12 months, we are also doing it cautiously," he said.
