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Kenya Airways announces $100m net loss

Thursday May 25 2017
mbuvi

Kenya Airways CEO Mbuvi Ngunze (right) with acting Finance Director Dick Murianki during an investor briefing on October 27, 2016. FILE PHOTO | NMG

Kenya Airways (KQ) has cut its net loss for the year ending March by 60.9 per cent to Ksh10.2 billion ($100m) compared to Ksh26.2 billion ($260m) last year.

Despite a reduction in capacity, passenger numbers grew by 5.4 per cent to 4.5 million in a record for the airline, outgoing chief executive officer Mbuvi Ngunze said while announcing the results on Thursday.

The national carrier's cargo tonnage dropped 14.6 per cent to Ksh56.8 billion ($560m) due to the phasing out of its wide body aircraft, KQ's acting finance director Dick Murianki said.

It's turnover dropped 8.5 per cent to Ksh106 billion ($1 billion).

'Stronger' airline

Mr Ngunze expressed optimism on the future of the national carrier. "A lot of people had buried KQ two years ago, but today it is stronger than ever. The turnaround is happening," he said.

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"Even as I leave KQ, the team I leave behind is focused on the Operation Pride turnaround plan," he said.

Kenya Airways posted a Ksh26.2 billion ($260m) net loss in 2016, preceded by a Ksh25.7 billion ($256m) loss the previous year, when Mr Ngunze took over at the helm.

He is set to be replaced by Polish national Sebastian Mikosz as the chief executive next Thursday.

READ: Deal that earned new KQ boss his job

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