Kenya Airways narrows full-year pretax loss to 4.86 bln shillings - CNBC Africa

Kenya Airways narrows full-year pretax loss to 4.86 bln shillings

Earnings

by admin 0

Kenya Airways narrows full-year pretax loss to 4.86 bln shillings

This was helped by a 7 percent jump in revenue and a slight drop in operating costs, its finance chief said on Wednesday.

The airline, which is 26.73 percent owned by Air France-KLM and 29.8 percent by the government, is ranked among the largest carriers in sub-Saharan Africa, alongside South African Airways and Ethiopian Airlines.

Kenya Airways, which said on Tuesday it had picked its operations boss Mbuvi Ngunze to replace outgoing CEO Titus Naikuni in December, has suffered from insecurity in the east African nation following attacks by Somalia's Islamist al Shabaab insurgents that cut demand for air travel.

Alex Mbugua, the airline's finance director, said total revenue had however increased to 106 billion shillings during the year, mainly due to higher yields from the passenger business.

Direct operating costs fell by 2 percent driven mainly by savings of 1.5 billion shillings from favourable oil prices and efficient consumption, Mbugua added.

The airline, which was privatised in 1996, also benefited from a realised gain of 972 million shillings from its fuel-hedging positions.

Naikuni, who has run the company since 2003, said they were planning to open new routes this year using the carrier's newly acquired fleet of Boeing 787 Dreamliner planes.

"We are also looking into going to Beijing this year," Naikuni told an investor briefing, adding the route will be launched in September.

Comments