Kenya Airways posts record Sh25.7bn loss on high costs

Published On July 30, 2015 » 754 Views» By Denzil Musumba » Business, Business News, Finance, Kenya, News, Slider
Kenya Airways CEO Mbuvi Ngunze (right) and Finance Director Alex Mbugua during a media briefing on July 30, 2015. PHOTO | EDWIN OKOTH | NATION MEDIA GROUP

Kenya Airways CEO Mbuvi Ngunze (right) and Finance Director Alex Mbugua during a media briefing on July 30, 2015. PHOTO | EDWIN OKOTH | NATION MEDIA GROUP

Kenya Airways has reported a record Sh25.7 billion loss after tax attributable to competition from Middle East carriers and high operating costs.

The airline also blamed travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation, for eating into the company’s 2014/2015 full-year earnings.

“We have had turbulent times and this loss is obviously significant. It is, however, important to know that we have made significant investments at a time when the industry generally was going through had times,” said Chief Executive Officer Mbuvi Ngunze.

The flag carrier has secured a Sh20 billion loan to avoid sinking into complete bankruptcy.

The airline’s troubled relations with pilots and crew have also significantly contributed to the loss.

Below are the full year net earnings for KQ in the last 5 years.

2011-3.53bn profit

2012-1.66bn profit

2013-7.86bn loss

2014-3.38bn loss

2015-25.7bn loss

Here is an overview of the company’s income statement as announced.

stat

Source: Daily Nation 

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Is a muilti-talented broadcast journalist, politician and activist residing in the United States. He is the founder & CEO of Border Media Group that runs Border Radio, Diaspora Mirror, Your Phone Radio (YPR), Jambotel, Denzah Designs, Border TV and Border Entertainment/Deejays. The company operates in the US and Kenya.

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