Kenya Airways cuts losses by 57pc

Kenya Airways' incoming managing director Mbuvi Ngunze (left) and Chairman Evanson Mwaniki during a briefing on the airline's full-year financial results at the Intercontinental Hotel in Nairobi on June 25, 2014. SALATON NJAU/NATION 

In Summary

• The main contributors to the reduction in passenger numbers were listed as the August 2013 fire incident at JKIA which affected the traffic flow of transit passengers through Nairobi due to the bad publicity.

By EVELYNE MUSAMBI
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Kenya Airways last year managed to cut its losses by Sh4.4bn on favourable jet fuel prices and better business environment in the first half of the year ending March 2014.

The carrier posted a loss of Sh3.4bn compared to a loss of Sh7.8bn the previous year helped by a 7 per cent surge in revenues to Sh106bn.

 

The improved performance, KQ said, was due to the stabilisation of the Eurozone economies and favourable jet fuel prices.

Kenya Airways which Tuesday announced a new chief executive Mr Mbuvi Ngunze is currently ramping up the number of its carriers as it seeks to open new routes and shore up revenues.

The airline said it, however, posted losses during the second half of the financial year due to a reduction in the passenger revenues.

The main contributors to the reduction in passenger numbers were listed as the August 2013 fire incident at JKIA ,which affected the traffic flow of transit passengers through Nairobi due to the bad publicity.

The September 2013 terrorist attack at the Westgate mall and other attacks also contributed as they significantly eroded leisure travel from the traditional markets, not forgetting the travel advisories issued against travel to this country.