Business

Troubled Kenya Airways To Announce More Loss

Kenya Airways (KQ) has announced that it anticipates 25 percent or more lower earnings for the period ending December 31, 2019 when compared to 2018.

In a notice signed by Kenya Airways Board Chair Michael Joseph, the troubled airline blamed the performance on stiff competition.

“Although Kenya Airways realised improved revenue growth in the year, profitability was constrained by the increased competition in the airline’s area of operations which, in turn, has increased pressure on pricing in order to remain competitive. In addition, the adoption of new International Financial Reporting Standards (IFRS) 16 rules in 2019 has required significant adjustments to both the profit and loss statements and balance sheets for the current financial year,” he said.

The profit warning means that KQ will report a net loss greater than the Sh7.5 billion that was recorded in December 2018 when higher costs offset a jump in revenue.

The troubled airline has been making efforts to improve earnings after several years of posting losses.

Fuel, personnel and cost of aircraft have been identified among the top three drivers of KQ’s expenses, contributing to about two-thirds of the operating costs.

Earlier this year, the board had announced that KQ — which is 48.9 per cent government-owned and 7.8 per cent by Air France-KLM — plans to double its fleet over the next five years if they can find the right financial structure.

Following the resignation announcement by outgoing CEO Sebastian Mikosz earlier this year, the airline on Monday appointed Jambojet chief executive Allan Kilavuka to fill the position in an acting capacity. Mr Kilavuka’s appointment is effective January 1, 2020.


There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram

Related posts

Kenya Airways Resumes Flights To London But You Must Rest For Coronavirus First

nairobi-exposed

No One Is Willing To Buy Gideon Ndambuki’s Grand Hotel In Machakos

nairobi-exposed

Mwalimu Sacco Faced With Troubles In Sale of Troubled Spire Bank

nairobi-exposed

Insider View Details The Insanity At Centum Investment By CEO James Mworia

nairobi-exposed

Expect M-Pesa disruption on Tuesday for maintenance

nairobi-exposed

Seven top Nairobi Securities Exchange tycoons that are said to have overstayed at CEO post

nairobi-exposed

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More