Kenya Airways costs cut help narrow half-year loss to $37m.

 
 Kenya Airways chairman Michael Joseph (left) and CEO Sebastian Mikosz during the half-year results release on November 17, 2017. PHOTO | SALATON NJAU | NMG .

By The EastAfrican More by this Author
 

Kenya Airways has narrowed its half-year net loss to Ksh3.8 billion ($36.7 million) compared to Ksh4.8 billion ($46.2 million) for a similar period in 2016, on reduced costs.

The national carrier's operating profit for the six months ended in September rose by 52 per cent to Ksh1.44 billion ($13.9 million) from a year earlier.

The airline reduced its overheads by 8 per cent to Ksh5.2 billion ($50 million) in the period, which saw its revenues decrease by 0.4 per cent to $526 million. 

"We have kept our fleet costs in check. Going forward, we look to grow our routes strategically. We shall be extremely cautious about our cash spending," chief executive Sebastian Mikosz told investors at a briefing in Nairobi on Friday.

Passenger numbers grew by 3.3 per cent to 2.31 million with KQ's intra-Africa traffic improving by 6.7 per cent. However, Kenya's political uncertainty had had a dampening effect, Mr Mikosz said.

Restructuring

KQ shares were suspended from trading at the Nairobi Securities Exchange on Wednesday for two weeks to allow for listing of new shares after the company completed a $2 billion debt restructuring with some loans having been converted into equity.

"The capital optimisation is done. It was a decision based on compromise. As KQ chairman, I will be managing a bunch of bankers and government people. Will that be easy? I don't know," said Michael Joseph on Friday.

"We're not going to do stupid things going forward. We'll learn from our mistakes. Our key focus is growing sales and keeping a lid on costs. We have a good team now."

Reported by Mugambi Mutegi and Hellen Githaiga.