Kenya Airways posts Sh10bn loss on reduced travel over insecurity, Ebola

Kenya Airways has reported a Sh10 billion loss for the half year ending September, taking a beating from the effects of high insecurity in the country and the Ebola outbreak in West Africa.

The company said on Thursday that regional insecurity led to reduced travel to Kenya, affecting its passenger yield, while the Ebola pandemic forced the airline to discontinue flights to two West African destinations.

“Kenya Airways operated under a very challenging business environment in the first half of the year. This is a continuation of the trend from last year following the fire at JKIA (Jomo Kenyatta International Airport).

"The situation has been aggravated by the Ebola pandemic, which led to the suspension of our flights to Sierra Leone and Liberia in August 2014,” new group Managing Director Mbuvi Nguze said while addressing investors.

Turnover increased by 4.5 per cent to Sh56 billion. The company incurred an operating loss of Sh5 billion mainly because it operated under capacity.

Mr Ngunze said the figures also reflect an impairment loss of Sh5 billion on write-down of aircraft approved for sale by the board.

He took over as the company’s CEO at the beginning of this month, succeeding Mr Titus Naikuni, who retired after serving the airline for 11 years.