Naikuni to quit as KQ records Sh384m profit

Kenya Airways group chief executive officer Titus Naikuni is set to retire next year.

KQ’s chairman Evanson Mwaniki disclosed on Wednesday at an investor briefing in which the company announced a turnaround of its fortunes from loss-making territory to profit in the half year to September 2013.

“The recruitment process for his replacement has commenced to ensure a seamless transition next year,” he said.

Mr Naikuni has been at the helm of KQ since 2003, having previously served as the managing director of Magadi Soda Company and as a permanent secretary for Transport in President Moi’s “Dream Team” that brought in top CEOs from the private sector.

“In my last year on the job, I will do what I have been doing as CEO and maybe consider golfing after I retire,” said Mr Naikuni when asked about his future plans.

In the six months to September 30, 2013, the national carrier posted an after-tax profit of Sh384 million against Sh4.8 billion loss recorded over same period last year.

The turnaround was assisted by a reduction in direct operating costs, which reduced by Sh2.6 billion to stand at Sh37.3 billion, driven by lower fuel prices.

Employee costs declined year-on-year by 557 million due to lower staff numbers.

Mr Naikuni said the airline was expecting to receive its first Boeing 787 Dreamliner plane in the first quarter of 2014, as part of a replacement plan for its ageing B-767s fleet.

“I have been to the manufacturers and I can say now with confidence that we shall receive the Dreamliners next year,” he told investors.
Moses Njuguna of Sterling Capital said KQ should consider cutting down its costs to maintain profitability.

“Its cost to income ratio is still relatively high and I think unless that is checked, the bottom line shall be affected,” he said.