Kenya Airways embarks on move to recover profits

Kenya Airways and CAA officials cut a tape to commission the new cargo plane in Entebbe. PHOTO BY MARTIN SSEBUYIRA 

By Victor Juma (Monitor correspondent)

In Summary

The firm is closely watching its costs with the aim of rebounding from losses.

NAIROBI - Kenya Airways (KQ) is banking on cost-cutting measures to recover from the tough two years that saw the national carrier swing to the biggest loss ever in the history of companies listed on the Nairobi bourse.

The national carrier posted a loss of Ksh7.8 billion (Shs235 billion) in the year to March compared to a profit of Ksh1.6 billion (Shs42 billion) last year, which was still a 57 per cent drop from the 2011 numbers.

Analysts led by Citigroup say that increased competitions among global carriers and a soft global economy have made it critical for KQ to cut costs and restore profits. Kenya Airways revenues dropped by Ksh9 billion (about Shs270 billion) to Ksh98.8 billion (about Shs2.9 trillion).