National carrier Kenya Airways has today announced an decrease in losses from last year.
KQ has reported a Sh7.59 billion loss for the 12 month period ending December 2018. This is an improvement from the Sh9.44 billion loss announced for the full year 2017.
The airline has attributed the loss to high cost of fuel, high salaries and a high fleet ownership cost. These account for nearly two thirds of its operation.
There was however a notable increase in revenue, clocking in at Sh114.45 billion compared to last year’s Sh106.2 billion. This is however still below their 2016 revenue of Sh116 billion.
In its statement, Deloitte stated, “Kenya Airways current liabilities exceeded Its current assets by KShs 101.540 million (31 December 2017: KShs 106.422 million). These events or conditions, along with other matters as set forth In note 2(e) of the audited financial statements Indicate that a material uncertainty exists that may cast significant doubt on Kenya Airways Pie’s ability to continue as a going concern.”
Lest we forget: the last time Kenya Airways made a profit was 2012… Then:
2013= sh10.8bn loss
2014= sh4.9bn loss
2015= sh29.7bn loss
2016= sh26.1bn loss
2017= sh10.2bn loss
2018= sh7.6bn loss
Total losses so far= sh89.3bn
Think about this befoe handing over JKIA to KQ.
— Mungai Kihanya (@mungaikihanya) April 30, 2019
The national carrier has been trying to make an argument for it to take over the running of Jomo Kenyatta International Airport, but many Kenyans have expressed their reservations.