Kenya Airways has announced its financial results for the half-year ending 30 September 2015. The airline’s turnover of Ksh56.7 billion represented a 2% increase on the same period in the previous year, while operating losses of Ksh2.2 billion before tax compare favourably to last year’s loss of Ksh10.5 billion.
During the period KQ has focused on both financial and business turnaround, with sub-optimal financing, commercial efficiency, network optimisation, cost containment and productivity being the primary areas that are receiving attention.
Going forward the main focus of the company will be on the business turnaround, with the launch of Operation Pride, a programme that includes a multitude of initiatives designed to turn the airline into a profitable and proud organisation again.
Over the six-month period in question the number of passengers carried increased by 2%, despite a cut back in capacity of 7.9% as part of a tightening strategy.
This strategy included replacing the larger Boeing 777-200ER aircraft with the B787-8 Dreamliner on its London, Middle East and Far East routes. In West Africa there was a tactical reduction in flights in line with demand, while in Kenya the group consolidated the operations of KQ and JamboJet.
Direct operating costs fell by Ksh7.3 billion as a result of this operations rationalisation and a respite in fuel prices. During the first half of the current financial year Kenya Airways took delivery of one Boeing 787-8 Dreamliner and one Boeing 738-800NG aircraft, bringing the total fleet to 48.
Amb. Awori elected as Chairman
Ambassador Dennis Awori has been elected Chairman of the Board of Kenya Airways, following the departure of Evanson Mwaniki, who retired last October. Ambassador Awori has extensive experience in the corporate world, having worked for many years in the motor industry, latterly with Toyota East Africa. He served as Kenya’s Ambassador to Japan and Korea from 2003 to 2009. Upon his return he rejoined Toyota Kenya as Chairman and is also Chairman at Toyota Tsusho East Africa. Amb. Awori joined the KQ Board as a director in 2011, and was Chairman of the Human Resources Committee and a member of the Corporate Governance and Nominations Committee. He was recently appointed to the Kenya Vision 2030 Delivery Board.
Mbuvi Ngunze to lead Aviation Association
Kenya Airways has received recognition at the 47th Annual General Assembly of the African Airlines Association (AFRAA), with the election of Group Managing Director and CEO Mbuvi Ngunze as chairman of the executive committee. AFRAA is the trade association for airlines from the member states of the African Union and has its headquarters in Nairobi.