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Kenya Airways Falls to 9-Year Low as It Extends Drop After Loss

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June 18 (Bloomberg) -- Kenya Airways Ltd., sub-Saharan Africa’s third-largest airline, declined to the lowest level since 2004 after it reported its second annual loss in four years.

The company’s shares, the second-worst performers in Kenya this year, dropped 3.9 percent to 10 shillings by the 3 p.m. close in the capital Nairobi, the lowest since April 2004. About 2.7 million shares were traded, more than six times the three-month average volume.

The carrier posted a loss of 7.86 billion shillings ($92 million) in the 12 months through March, compared with a profit of 1.66 billion shillings a year earlier, it said on June 14. Kenya Airways failed to boost passenger numbers and revenue was eroded by a stronger shilling, it said. The shares retreated 6.5 percent since the announcement.

“Some investors are re-shifting their portfolio,” Linet Muriungi, a research analyst at Nairobi-based Kestrel Capital (East Africa) Ltd., said today by phone. “They are lightening their weight in Kenya Airways until the company gets the business in order because some of the reasons for the poor performance are fundamental.”

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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