Kenya Airways reduces its net loss by a massive Sh16 billion

Good news for Kenya Airways

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Kenya Airways seems to be slowly getting back to its feet after announcing its fully year earnings performance for the period 1 April 2016 to 31 March 2017 year.

The national airline on Thursday morning announced a reduction in net loss by a massive 60 per cent to Sh10.2 billion compared to Sh26.2 billion reported last year.

This reflects a huge improvement in the net loss by over Sh16 billion for a company that has in the recent past been faced by corruption and poor management leading to loss of billions.

The airline,which saw losses mount after a slump in Kenyan tourism and an expensive fleet renewal exercise, swung to an operating profit of 897 million shillings from a loss of 4 billion shillings a year earlier.

Announcing the results for the last time as Kenya Airways Chief Executive, Michael Ngunze stated that the airline had also recorded an improvement in its cabin factor as well as number of passengers for the year ended March 2017.

"Cabin factor has gone up by 4% to 72.3%, passenger numbers have gone up by 5.4 % to 4.5 Million.”

He added that a number of programmes have been implemented in a bid to steer the airline back to profitability.

"342 revenue generating and cost saving initiatives have been implemented,” stated Mr. Ngunze.

On his part KQ Chairman Michael Joseph added:“Expect more improvements and announcements especially in operational and financial matters.”

Ngunze leaves at a time when implementation of a turnaround strategy that involves balance sheet restructuring, sale and leasing of aircraft and the sale of land is underway.

His successor, Sebastian Mikosz will take over in a week’s time on Thursday 1 June 2017.

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