KQ records profitable loss after months of turn-around strategy

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The outgoing Kenya Airways Chief Executive officer Mbuvi Ngunze (R) and Chairman Michael Joseph. [Photo/the-star]

The Kenya Airways has recorded a ‘profitable loss’, after its full-year loss before taxation dropped from Sh26.2 billion, to Sh10.2 billion, for the period ending March 31, 2017.

Operating costs went down from Sh67.86 billion to Sh65.36 billion, revenue went down 8.5 per cent to Sh106.28 billion.

The airline has been recording losses, despite government’s bail outs, a move that saw senior officials replaced.

Releasing the full-year results, flanked by Chairman Michael Joseph, outgoing KQ Chief Executive officer Mbuvi Ngunze released cited the ‘Operation Pride’ turnaround strategy, slashing of some of the employees, selling of some of the planes and KQ lands, to the ‘profit’.

“In the coming months, KQ will announce the outcome of the capital optimisation plan which will place the airline on a strong footing,” said Ngunze, who said he would be leaving, to be succeeded by Polish chief executive Sebastian Mikosz.

Joseph on his part the KQ Board, stakeholders, shareholders, partners and financiers for the ‘slight’ loss, saying the airline would soon be back on the profit making track.

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