Kenya Airways (KQ) this week released it’s half-year results posting a loss of Ksh 8.56 billion.
The loss in the period ended June 30, 2019, was attributed to the investment in their new routes, the return of two wide-body aircrafts and other operational costs.
The national carrier however recorded a 12.2 percent increase in revenue due to the new routes. Revenue for the first half increased to Kshs. 58.55 billion from Kshs. 52.19 billion compared to the same period last year.
The results were relayed during an investor briefing on Tuesday, August 27, where the KQ board and management expressed optimism that the strategic investment initiatives the airline has been implementing in the turnaround program for the past two years are progressively paying off.
KQ board Chairman Michael Joseph noted, “We continue to steer the business away from the previous headwinds, steadily digging it out of the historic loss of Ksh. 25 billion posted in 2014. As at the end of 2018, the losses had narrowed by over 250%. This is a testament of our commitment to turnaround Kenya Airways”.
KQ CEO and Managing Director Mr Sebastian Mikosz pointed out that the Nairobi- New York route that was launched in October 2018 has exceeded expectations and continues to receive positive passenger uptake.
He added that KQ’s strategic network expansion is still going on with the airline having recently secured codes to fly to Canada and Beijing.
“Despite the tough market environment, we are making positive strides which involve resource optimization and the robust growth approach we have taken in this very competitive marketplace. Some of these investments may deny us, our shareholders and stakeholders the coveted bottom-line numbers, but we have our eyes on the bigger picture,” Chairman, Michael Joseph added.