Kenya Airways posts a Ksh. 7.59 Billion loss for the full year 2018

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Kenya Airways has reported a loss of Ksh. 7.59 Billion for the full year 2018. This is against a loss of Ksh. 6.41 Billion that was reported for the full year 2017.

The airline recorded a total revenue of Ksh.114.18billion, where passenger and cargo revenue contributed to Ksh.95.1billon and Ksh.8.5billion respectively. The airline earned Ksh.10 billion from other lines of business including; ground handling services, maintenance repairs and overhaul, training, among others.

The loss was attributed to the high cost fuel, personnel and the cost of aircraft, these factors contributed to about two thirds of total cost. Fuel cost remained the most volatile the airline continued to hedge fuel prices to protect themselves from the volatility. The cumulative direct operating costs stood at Ksh.75 Billion, with fuel cost taking up Ksh. 33.06 Billion which is about 44% of the total cost of operation. Cost of fleet ownership was recorded at Ksh.18.9 billion and overheads including wages stood at Ksh.20.9 Billion.

The KQ CEO Mr. Mikosz, stated that, whereas the drop in the oil price during the fourth quarter of 2018 gave airlines a slight reprieve, there was concern that it will rise again. He also added that, “We have a dedicated team looking at multiple solutions to cushion the airline against the shock of potential further rise in fuel cost and forex volatility in 2019. We are very optimistic that the turnaround strategies we have employed will deliver results.”

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