KQ MAKES RECORD LOSSES

Kenya Airways KQ has reported a massive loss of 29bn shillings before tax in the financial year ended 31^st March 2015.

Audited reports of the airline company show that after tax losses reached 25.7 billion shillings after tax.

During a press conference in Nairobi on Thursday KQ blamed its misfortunes on the travel advisories slapped on Kenya by United States of America and Britain.

‘We have seen Britain lift its advisory in June, however the impact is not immediate.Most visitors from European countries make their bookings 6-9 months before they travel,’ says CEO Mbuvi Ngunze.

Visibly noted by the CEO is the fuel pricing and foreign exchange rates that greatly affected the company’s fortunes.

‘Operators in the market have said that the rate of exchange is not going to be stable. We have seen a very significant volatility in the market. Fuel is the region of over 35% of our costs of operation.Most of our fuel is consumed in environments where the prices of this commodity is significantly higher has an impact on our profits from a business point of view, explains the CEO.

Despite the losses the national carrier boasts of a growing balance sheet.

‘This puts us in a very good position because today we have one of the biggest fleets in the world,’ says Alex Mbugua the Group Finance Director. 

The aviation industry contributes up to 10% of the GDP to Kenya's economy.