Kenya Airways Posts First-Half Loss on Dismissals, Exchange Rate
Kenya Airways Ltd. (KNAL), sub-Saharan Africa’s third-biggest carrier by passengers, posted a first- half loss on lower passenger numbers, a stronger shilling and costs associated with firing workers.
The loss was 4.79 billion shillings ($56.1 million) in the six months through September compared with a profit of 2.03 billion shillings a year earlier, Chief Financial Officer Alex Mbugua said at a briefing today in Nairobi, the capital. Revenue dropped 9.3 percent to 49.8 billion shillings, he said.
“The global airline industry was impacted by the economic downturn and austerity measures in Europe and high prices of jet fuel,” the company said in a statement to the Nairobi Securities Exchange.
Profit in the global airline industry is expected to more than halve to $4.1 billion this year from $8.4 billion in 2011, according to the International Air Transport Association.
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