Kenya Airways blames dip in 2019 profit on increased competition
Nairobi, Kenya (PANA) - Kenya Airways has announced that its net profit for the year ended December 2019 will decline by at least 25, on account of increased competition in the airline’s area of operations.
The airline, struggling to stay afloat, says increased competition has in turn led to a rise in pricing in order to remain competitive.
The bad news was communicated to the media by Kenya Airways Board Chair Micheal Joseph.
“The board is undertaking several key strategic initiatives to improve the financial results of the carrier going forward both in 2019 and in the years ahead,” the notice by Kenya Airways said.
The profit warning is despite many efforts to revive the Airline following several years of posting losses.
The airline reported a $73.7 million loss for the full year to December 2018 citing fuel costs as a major challenge.
Last Monday, the airline announced the appointment of Allan Kilavuka the acting CEO, replacing Polish national Sebastian Mikosz who opted out of the top job before the expiry of his contract.
Kilavuka, a Kenyan, is the current CEO of the airline's low cost subsidiary Jambojet.
His appointment is effective 1 January, 2020, and that he will serve in the role until a substantive CEO for Kenya Airways is appointed.
-0- PANA DJ/MA 18Dec2019
