KQ blames higher fuel costs, tough political period for Sh6bn loss

A Kenya Airways Plane: KQ plans non-stop flights to Cape town and direct flights to Mauritius. FILE PHOTO | MARTIN MUKANGU | NMG 

By MUGAMBI MUTEGI

More by this Author

Summary

• Carrier says fuel costs, which went up 14 per cent, remain the biggest challenge to its profitability.
• Airline is optimistic of 2018's outlook amid a planned rollout of daily flights between Nairobi and New York this October.

Kenya Airways (KQ) has posted a Sh6.1 billion net loss for the nine months to December as it announced a change in its financial calendar to sync with the calendar year.

The national carrier's management has attributed the loss position to higher fuel costs and the negative impact of a prolonged electioneering period.

Fuel costs, which went up 14 per cent in the period, remain the biggest challenge to KQ's profitability.

Route expansion

However, the airline is optimistic of 2018's outlook amid a planned rollout of daily flights between Nairobi and New York this October, non-stop flights to Cape town and direct flights to Mauritius.

Chief executive Sébastian Mikosz said the full financial impact of the new US route will be felt in 2019, adding he expects a revenue boost of between 8 and 10 per cent.

The firm will be recalling its Dreamliner from Oman Air to serve this long haul route.

READ: KQ books tickets for direct US flights starting October

ALSO READ: Ethiopian Airlines announces flight to Chicago

Kenya Airways will, in partnership with its European partners, roll out economy comfort class on all aircraft in the next 12-15 months as part of its strategy to increase revenues.

Michael Joseph, KQ's chairman, said Wednesday at an investors' briefing that Polish consultants are still part of the team alongside consultants from other countries, adding that focus on the Polish misplaced.

READ: Kenya Airways and KLM extend route sales deal