Kenya Airways announced yesterday that it has dug its first half losses of its staggered exercise due to theincreased borrowing costs and some devaluation of the shillingthe Kenyan national currency.
The Kenyan airline, a 7.8% subsidiary of Air France-KLM and 48.9% of the Kenyan state, is crumbling under a mountain of debt, despite numerous public bailouts, the last profit dating back to 2012. half-year loss before tax more than doubled, to 22 billion shillings ($151 million) compared to 9.9 billion shillings a year earlier, she said.
“The devaluation of the Kenyan shilling has a significant negative impact on our financial services as the majority of our transactions are carried out in major foreign currencies,” explained its managing director Allan Kilavuka. According to him, the 14% fall in the shilling since January has increased overhead costs by 22%.
However, Kenya Airways’ total revenue increased by 56% thanks to a strong increase in the number of passengers to 2.3 million compared to 1.6 million in the first half of last year. “Our goal for the future is to recapitalize the business to place Kenya Airways on a stronger footing and provide a stable foundation for long-term growth“, concluded Allan Kilavuka.
