There’s no end in sight for Kenya Airways’ financial problems.
The airline has recorded Ksh11.9 billion after tax loss for the half-year ending September 30 2015, up from Ksh10.45 billion in the same period last year. This represents a 21% increase in loss.
The management attributes this dip in earnings to capacity drop and shrinking revenue despite the significant decrease in fuel prices.
“The equity position of the company is negative,” KQ CEO Mbuvi Nguze said at a media briefing this morning. “But there are turn around plans and the situation will be sorted as soon as possible.”
The national carrier shocked the market by posting a record loss before taxation of Ksh29.7 billion, up from Ksh4.8 billion, for the period ending June 30, 2015. But the government is auditing its accounts with a view to injecting more cash to save the airline.
