Monday, November 28, 2011

Kenya Airways profit jumps 41%

Kenya Airways after-tax profits rose to KShs 2.034 billion (D82 million) in the first half of this year as compared to KShs 1.436 billion (Dh58 million) for the corresponding period last year, registering an increase of 41.3 per cent.
Earnings per share increased to KShs 4.40 from KShs 3.11 realised in the prior year.
Half year turnover reached KShs 54.9 billion (Dh2.23 billion) which is a 33.3 per cent increase on the previous year figure of KShs 41.2 billion (Dh1.67 billion) despite the challenging economic and geopolitical environment that continues to impact the aviation industry.
Management continued to invest time and resources towards maintaining high levels of safety in all its operations during the period.
High Passenger traffic growth was achieved in all regions over the period as follows: Middle East passenger numbers grew by 24 per cent and European traffic was up 13.3 per cent due to improved demand out of London, Paris and Rome that was launched in late 2010 thus, was not part of first half of prior year.
Africa grew by 15.7 per cent largely due to launch of operations into Ouagadougou and N’Djamena during the period.  There was also improved performance on routes launched last year to Southern Africa and increased frequencies to Juba.  Far East traffic to Bangkok, Hong Kong and Guangzhou increased by 24.8 per cent largely the result of increased capacity in the region.
“This is an exceptional performance,” said Abraham Joseph, Area Manager - Gulf, Middle East & Pakistan, Kenya Airways.
“The response of our newly launched Jeddah route has been very positive which adds to our success. Our half year financial results are due to the hard-work and dedication of all our staff around the world. We have relentlessly pushed to reach new markets despite of the increasing competitive environment”.
The airline’s board has taken cognisance of the cyclical traffic demand and has approved a ten year plan that will enable Kenya Airways remain competitive by positioning itself to capture the traffic flows in the future.
The ten year plan starts from this financial year to 2020/21. The plan includes new destinations roll out covering the six continents and a fleet acquisition plan. The immediate items in implementation of the plan starts with earnest within the next six months with a Rights Issue as already communicated to potential investors. The Rights Issue proceeds will form part of the initial fleet pre-delivery payments for the years 2013/14 and 2014/15 aircraft acquisitions.