This archive report was first published on 18 December 2019.
Kenya Airways, the country's national carrier, has issued a profit warning, anticipating 25% or more lower earnings for the period ending December 31, 2019, compared to 2018.
According to a notice signed by Board Chair Michael Joseph, the airline's performance was constrained by stiff competition in the airline industry, which increased pressure on pricing to remain competitive.
Additionally, the adoption of new International Financial Reporting Standards (IFRS) 16 rules in 2019 required significant adjustments to the airline's financial statements.
As a result, Kenya Airways expects to report a net loss greater than the Ksh7.5 billion ($75 million) recorded in December 2018.
The airline has been making efforts to improve earnings after several years of posting losses, with fuel, personnel, and aircraft costs being major drivers of expenses.
Earlier this year, the board announced plans to double the airline's fleet over the next five years, pending the right financial structure.
Following the resignation of outgoing CEO Sebastian Mikosz, Jambojet CEO Allan Kilavuka has been appointed to fill the seat in an acting capacity, effective January 1, 2020.
