Kenya: Kenya’s National Carrier Is On A Free Fall As Its Half-Year Loss Almost Triples At $85.6m
The airline’s half-year loss more than doubled to hit Sh8.56 billion ($85.6 million) further sinking shareholders into a deeper negative equity position of Sh16.18 billion (161.8 million).
The airline attributed the 112% widening of loss to increased operating costs in the wake of its expansion into new routes and the return of two Boeing 787 planes that had been sub-leased to Oman Air.
The Kenyan parliament recently passed a motion to nationalised the airline which has been struggling to return to profitability and growth.
Kenya’s national carrier, Kenya Airways, is a free fall from profitability and has sunk even deeper in the red.
The airline’s half-year loss more than doubled to hit Sh8.56 billion ($85.6 million) further sinking shareholders into a deeper negative equity position of Sh16.18 billion (161.8 million).
The airline attributed the 112% widening of loss to increased operating costs in the wake of its expansion into new routes and the return of two Boeing 787 planes that had been sub-leased to Oman Air.
“In turning around Kenya Airways, a deliberate decision was taken not to shrink the airline but instead improve financial performance through strategic investments on growth opportunities,” said board chairman Michael Joseph after announcing the results in Nairobi on Tuesday.
Despite the massive losses, Mr. Joseph was optimistic the airline fortunes will turn around in the future and tried to assure shareholders.
Source: pulse.ng
By: George Tubei
