Kenya Airways said it widened its losses in the first half of its staggered financial year due to rising borrowing costs and the devaluation of the national currency, the shilling (AFP/Archives/Simon MAINA)
Kenya Airways said on Tuesday it widened its losses in the first half of its staggered financial year due to rising borrowing costs and the devaluation of the national currency, the shilling.
The 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.
The half-year loss before tax more than doubled to 22 billion shillings ($151 million) from 9.9 billion shillings a year earlier, it said.
“The devaluation of the Kenyan shilling is having a significant negative impact on our financial services as the majority of our transactions are conducted in major foreign currencies,” Chief Executive Allan Kilavuka said.
According to him, the 14% fall in the shilling since January has increased overhead costs by 22%.
Total revenue, however, increased by 56% thanks to a strong increase in the number of passengers to 2.3 million against 1.6 million in the first half of last year.
“Our aim going forward is to recapitalize the business to put Kenya Airways on a stronger footing and provide a stable foundation for long-term growth,” Mr Kilavuka said.
On the stock market, trading in Kenya Airways shares remains suspended.
© 2023 AFP
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