Companies

Kenya Airways half-year losses contract to Sh4bn

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A Kenya Airways plane at the JKIA in Nairobi. FILE PHOTO | NMG

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Summary

  • KQ made a net loss of Sh5.6 billion the year before.
  • The company’s revenue rose 3.1 per cent to Sh52.1 billion while “other costs” fell 41.3 per cent to Sh2.9 billion.
  • Airline says higher fuel prices present a threat to its margins in the short term.

Kenya Airways #ticker:KQ narrowed its net losses by 28.8 per cent to Sh4 billion in the half year ended June on the back of cost-cutting measures and revenue growth.

KQ, as the airline is known by its international code, made a net loss of Sh5.6 billion the year before.

The company’s revenue rose 3.1 per cent to Sh52.1 billion while “other costs” fell 41.3 per cent to Sh2.9 billion.

The national carrier says it made savings across staffing and fleet operations.

Fuel prices a threat

The airline says higher fuel prices present a threat to its margins in the short term.

“Although reporting improved performance, fuel price volatility continues to be a major challenge for the airline,” KQ said in a statement.

“The price per barrel has been on an upward trend since the beginning of this year closing at USD 74 as at June 30, 2018 representing an increase of 12 per cent in global fuel prices within the first half of the financial year.”

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