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Kenya Airways Loss Widens as Higher Costs Mar Turnaround Plan

  • Foreign exchange, borrowing costs jump; shares slump by 9%
  • Operating loss narrowed by 75% after airline reduced fleet
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Photographer: David Mbiyu/Corbis via Getty Images

Kenya Airways Ltd.’s full-year loss widened as the airline part-owned by Air France-KLM said increased foreign exchange and borrowing costs marred efforts to turn around sub-Saharan Africa’s third-largest carrier.

The after-tax loss increased to 26.2 billion shillings ($258 million) in the 12 months through March from 25.7 billion shillings a year earlier, the Nairobi-based company said in a statement on Thursday. Finance costs rose almost 50 percent to 7 billion shillings, while other costs jumped more than eight times to 10.8 billion shillings.