NAIROBI, KENYA: Kenya Airways has recorded a KeS7.5 billion (Shs277billion) net loss for the year ended December 31, 2018.
In a statement, the airline attributed the loss to volatile fuel prices, which saw its costs rise by 73.6 per cent from Sh19 billion incurred in the 9-month period in 2017 to Sh33 billion in the full year ended in December 2018.
The company changed its reporting period last year to coincide with the calendar year from the past when its financial year ran to the end of March.
“I would like to highlight some changes to our financial reporting. Following the Directors resolution in 2017 to change the Group’s year-end from March 31 to December 31, the 2018 financial statements cover a twelve-month period from January 1 to December 31, 2018, while the financial statements for 2017 cover a nine-month period from April 1 to December 2017,” said Michael Joseph, Chairman Kenya Airways.
“This, therefore, means that the 2018 results are not directly comparable with the 2017 results as it is a representation of 12 months against the 9 months in 2017,” he added.
The airline has embarked on various initiatives such as the network expansion through the introduction of new routes, revenue enhancement initiatives, senior management changes and improving customer experience aimed at boosting fortunes.
Following the steps, KQ’s revenue for the 12 months amounted Sh114.45 billion in 2018, as compared to Sh80.79 billion for the 9-month period ended December 31, last year.
According to Michael Joseph, the growth in the total revenue was mainly boosted by growth in passenger revenue from Sh63.9 billion in the previous 9-month of 2017 to Sh88.7 billion December 31, 2018.
During last year, the airline launched a new route between Nairobi and New-York making Kenya Airways the fifth carrier in Africa to make direct flights to the US after Ethiopian Airlines, South African Airlines, Egypt Air and Senegal Airlines.
It, however, scaled down the daily flights from seven times a week to five in a decision informed by IATA winter schedule. Recently, the national carrier said it would resume the daily flights in June as it looks to cash in on the summer high season.
“The New York route continues to be a strategic route for KQ and as an airline, we are firmly committed to it as we gear up for summer 2019 season, which is a high-flying season,” said KQ.