Kenya Airways half-year losses contract to $40m
Wednesday August 29 2018
Kenya Airways planes are seen parked during a pilots strike organised by Kenya Airline Pilots Association (KALPA) at the Jomo Kenyatta International Airport, Nairobi, on April 28, 2016. Bad weather has disrupted flights at the airport. PHOTO | REUTERS
National carrier Kenya Airways narrowed its net losses by 28.8 per cent to Ksh4 billion ($40 million) 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 Ksh5.6 billion ($55 million) the year before.
The company’s revenue rose 3.1 per cent to Ksh52.1 billion ($517 million) while “other costs” fell 41.3 per cent to Ksh2.9 billion ($29 million).
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.”