Kenya Airways reports a Ksh. 6.1 Billion loss for the period ended 31 December 2017

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Kenya Airways yesterday announced their results for the year ended 31 December 2017. This is after the board resolved to change the reporting period from 31 March. In the results they reported a loss before tax of Ksh. 5.97 Billion as compared to the Ksh. 10.2 Billion in the year ended 31 March 2017.

In the 9 month period, the operating profit was Ksh. 1,306 Million as compared to the previous 12 month period where the operating profit closed at Ksh. 897 Million. According to the airline, revenue was affected by high fuel prices which increased the group costs by 9%, The election period which brought about political tension saw reduced transit and terminating passengers hence affecting the airline’s revenue.

On the other hand, the airline managed it costs well with fleet costs for the 9 month period coming to Ksh. 10,556 Million whereas in the prior year ended 31 March 2017 fleet costs stood at Ksh. 15,524. Overheads for the 9 month period stood at Ksh. 15,537 Million while in the prior year ended 31 March 2017 overheads stood at Ksh. 24,500 Million.

The airline has adopted an optimistic outlook in 2018 amid roll out of new routes like the daily flights between Nairobi and New York this October, non-stop flights to Cape town and direct flights to Mauritius. The CEO Sébastian Mikosz indicated that he expected a revenue boost of between 8 and 10 per cent from the New York route. The firm will be recalling its Dreamliner from Oman Air to serve this route.

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