KQ posts Sh8.6bn loss in half year performance despite 6.6pc increase in passenger traffic

KQ BOEING 777 FLYING - KQ posts Sh8.6bn loss in half year performance despite 6.6pc increase in passenger traffic
The company had its losses stretched from Sh3.9 billion recorded in the same period last year, despite the airline’s total revenue increasing to Sh58.5 billion, a 12 per cent rise from Sh52.19 billion registered in the same period last year/FILE

NAIROBI, Kenya, 27 – Kenya Airways has expanded its loss before tax to Sh8.56 billion in its half year results.

The company had its losses stretched from Sh3.9 billion recorded in the same period last year, despite the airline’s total revenue increasing to Sh58.5 billion, a 12 per cent rise from Sh52.19 billion registered in the same period last year.

While announcing the company’s half year results, Chief Executive Officer Sebastian Mikosz said the national carrier had to spend more on the new routes, a trend which has affected its performance greatly.

“We invested in a lot of money on the new routes especially on operational costs since we are still working towards raising our profits from this,” he said.

Investments on the new routes such as New York, Mauritius, Libreville and Mogadishu delivered a 6.6 per cent increase in passenger numbers during the six months to Sh2.4 million.

This saw passenger revenues increase to Sh42 billion which is 5 per cent rise.

Operating costs increased by 5.3 per cent to hit Sh23.19 billion from Sh21.99 billion.

This was mainly brought about by KQ bringing back into service two Boeing 787 aircraft that had been sub-leased to Oman Air to support new routes.

“The two wide body aircraft were brought back to support operations in the new long long-haul routes and their costs are now fully borne by KQ, ” KQ Managing Director and CEO Mikosz added.

KQ as the airline also maintained low fuel costs that stood at Sh15.7 billion a marginal increase of 5.1 per cent from Sh14.9 billion registered during the same period last year.

Author: worldwidenewscast

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