KQ announces improved six months results

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Kenya Airways has recorded a net loss of Sh3.992 billion pre-tax for half the financial year 2018, an improvement compared to Sh5.7 billion reported for the same period in 2017.

According to the airline, the improvement in revenue has been attributed to an increase in passenger numbers by 6.6 per cent to 2.3 million while cargo uplift increased by 13 per cent to 31,973 tonnes as compared to 2017.

The cabin factor also increased by 2.8 points to 75.9 per cent while revenue increased by 31 percent due to increased passenger traffic and overall yield improvement with increased pressure on global fuel prices contributing to a 13.9 percent increase in operating costs.

Overall, the group’s results improved by 30.8 per cent from a pre-tax loss for the period ended June 30, 2018.

In a statement KQ Chairman Michael Joseph said that Kenya Airways was committed to enhancing its service delivery across all touch points with the aim of making it more authentic and true to its brand.

“The business has remained resilient and is focused on delivering solid results. We continue to optimize the network to create more connections through our hub in Nairobi and in turn increase efficiency in order to reduce overall costs and return profitability,” said the KQ chair.

He added that: “The airline is focusing on the expansion of its network in a bid to cater for the growing needs of passengers and to strengthen its footprint in Africa.”

However, fluctuation in fuel prices continues to be a major problem for the local airline with KQ statement reading that:

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

The price per barrel the statement said has been on an upward trend since the beginning of this year closing at USD 74 (about Sh7,452.54) 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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