Its a full year loss for Kenya Airways!!

Posted on June 14, 2013

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Soon after its management announced a Sh10.8 billion pretax loss, Kenya Airways shares listed at the Nairobi Securities Exchange plunged 5.1% on Thursdays closings prices.

The airline, Kenya’s national carrier reported the losses in what its management attributed to a host of factors among them the euro zone crisis, high fuel costs as well as the countries March 4th polls.

While the going has not been very smooth for African airlines, their international counterparts are starting to stabilize after turbulent times lasting more than four years.

According to the International Air Transport Association popular as IATA, Carriers are likely to generate net income of $12.7 billion in 2013. That compares with a forecast of $10.6 billion issued on March 20, and represents a 67 percent gain on last year’s profit of $7.6 billion.

however the association which recently had its AGM in South Africa and discussed the aviation industry in Africa extensively says African carriers likely to remain the industry’s poorest-performing region, with companies there returning a profit of just $100 million. This IATA attributes to issues such as safety concerns that most carriers like Kenya Airways, Ethiopian, and South African Airways have today significantly improved on.

Back to the Pride of African, the last 12 months have indeed been very turbulent as it tried to manage costs. Top on its lists was an epic battle with close to 600 of its employees that it sent packing. The back and forth court battles indeed impacted on its performance both up in the skies as well as at the listed market.

Interestingly going forward, chief executive Titus Naikuni notes very interesting agenda. The airline he says could be building its own hotel to cut back on the  associated with putting up staff and passengers whose flights have been delayed, Reuters news agency quotes.

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