Kenya Airways (KQ, Nairobi Jomo Kenyatta) is to undertake a capital restructure as it attempts to rebuild its business following a disastrous few years. Outgoing CEO Mbuvi Ngunze has said that despite a significant turnaround, these are just the "first results".
In the financial year ending March 2016, Kenya Airways suffered a crushing fourth consecutive annual loss, posting a net loss of KES26.225 billion (USD254 million). After instigating its Operation Pride turnaround program, its 2017 results were a significant improvement, posting an operational profit of KES897 million (USD8.6 million). It still however closed out the financial year with a loss after tax of KES10.207 billion (USD98.8 million).
One contributor to Kenya Airways financial improvements was a record 4.5 million passengers. Average passenger load factor increased 4% up to 72.3%, although Available Seat Kilometres (ASKs) decreased 4%. Overall operating costs were down slightly, but fleet rationalisation led to a reduction in fleet costs of 47.5%.
"We are seeing the first results of our investment in the turnaround," said Ngunze. "I had always said this was a marathon. There is a fundamental shift in our business. Kenya Airways remains resilient despite the operating market challenges managing to achieve improved results."
The Financial Times reports that the capital restructuring plan will be unveiled in the next two months, in time for the incoming CEO Sebastian Mikosz, formerly at LOT Polish Airlines (LO, Warsaw Chopin), to take over.
