Kenya Airways posts record Sh25.7bn loss on high costs

Kenya Airways CEO Mbuvi Ngunze (right) and Finance Director Alex Mbugua during a media briefing on July 30, 2015. PHOTO | EDWIN OKOTH | NATION MEDIA GROUP 

By EDWIN OKOTH
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Kenya Airways has reported a record Sh25.7 billion loss after tax attributable to competition from Middle East carriers and high operating costs.

The airline also blamed travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation, for eating into the company's 2014/2015 full-year earnings.

"We have had turbulent times and this loss is obviously significant. It is, however, important to know that we have made significant investments at a time when the industry generally was going through had times," said Chief Executive Officer Mbuvi Ngunze.

The flag carrier has secured a Sh20 billion loan to avoid sinking into complete bankruptcy.

The airline's troubled relations with pilots and crew have also significantly contributed to the loss.

Below are the full-year net earnings for KQ in the last five years.

2011-3.53bn profit

2012-1.66bn profit

2013-7.86bn loss

2014-3.38bn loss

2015-25.7bn loss

Here is an overview of the company's income statement as announced.