NAIROBI (Xinhua) --
Kenya Airways (KQ) narrowed its net loss to
about 7.5 billion shillings (about 75 million U.S. dollars) on
account of strong revenue growth boosted by high passenger numbers
and cargo volumes, the airline said in its 2018 financial results
released on Tuesday.
Rising from its historic net loss of
250 million dollars in 2015, Kenya Airways board of directors and
management talked of a "ray of hope" for the airline, which was
rapidly descending into irredeemable loss streak, before its
miraculous path to recovery.
Michael Joseph, Kenya Airways chairman, told an investor briefing
in Nairobi that the airline recorded a total revenue of 1.14 billion
dollars in 2018, obtained from the growth in passenger numbers.
"Kenya Airways has continued to focus on delivering the
turnaround program that we embarked on in 2016," he said.
Joseph said the airline implemented cost-cutting measures which
enabled it to swim above extreme market pressure, high fuel costs,
personnel and cost of fleet acquisition, to stay on course to
In 2015, the airline’s finances deteriorated with cost of
operations hitting some 412 million dollars in 2014.
It managed to cut the operating loss to about 119 million dollars
after renegotiating its loan repayment schedules with local banks as
part of its financial restructuring process.
The airline then formed a special purpose vehicle to support
management of company assets and acquisition of aircraft.
Joseph said due to changes in accounting rules, the current
financial statement was not directly comparable with the 2017
results because it represents 12 months against the nine months for
Its cabin-load factor, which reflects the number of passengers on
every flight, stood at 77.6 percent compared to the previous year’s
76 percent, according to the results.