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Kenya Airways announces US $ 247 million loss


SomaNet News Archive

Kenya Airways has reported a record Sh25.7 billion  or approximately US $ 247.7 loss after tax attributable to competition from Middle East carriers and high operating costs, Daily Nation reported on Thursday.

According to reports, Kenya Airways blamed travel advisories that led to a slump in the tourism industry, as well as runway closures for renovation, for eating into the company's 2014/2015 full-year earnings.

"We have had turbulent times and this loss is obviously significant. It is, however, important to know that we have made significant investments at a time when the industry generally was going through had times," said Chief Executive Officer Mbuvi Ngunze reportedly said.

Meanwhile, Daily Nation says Kenya Airways  has secured a Sh20 billion or approximately US $ 200 million  in loans to avoid sinking into complete bankruptcy.

Sources say Kenya Airways’s troubled relations with pilots and crew have also significantly contributed to the loss.