Broke KQ announces KSh 7.59 billion losses, blames high cost of fuel ▷ Kenya News

- The airline says other factors that have driven up losses are high cost of salaries and fleet ownership

- Losses have gone up by about KSh 1.19 billion from KSh 6.4 billion it recorded during the same period in 2017

- It has called for support from the media, government and investors to help it recover from economic shocks

- This comes amid reports on a possible merger of KQ and JKIA that have sent shivers among employees

National carrier Kenya Airways (KQ) has reported KSh 7.59 billion in looses for the twelve months period that came to a close in December 2018.

This emerged on Tuesday, April 30, when the airline announced its 2018 financial year performance.

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Airline's CEO Sebastian Mikosz attributed the losses to what he termed as high cost of fuel that had gone up by 30%.

"Fuel is our greatest challenge and this will be for a while, oil prices are up by 30%. Fuel represents over 40% of our direct operating costs .We started mitigating this risk by implementing a new hedging policy with minimal risk," said Sebastian Mikosz.

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The losses have increased by about KSh 1.19 billion from KSh 6.4 billion it recorded during the same period in 2017.

Chairman Michael Joseph, while making his remarks, called for support from government, media and investor to help KQ maintain buoyancy.

Revenue, however, grew by 41.3% to KSh 114.2 million as a result of increased passenger numbers.

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In a period of nine months to December 2017, the carrier raked in KSh 80.79 in revenue.

This comes amid reports of a proposed merger of KQ and JKIA, a move which top management at the airline says will streamline operations and maximize profits.

A section of staff, however, expressed fear that the move will cost them their jobs.

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Source: Tuko.co.ke