Kenya Airways has reported a record K1,326 billion loss after tax attributable to competition from Middle East carriers and high operating costs.
The airline also 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.
The flag carrier has secured a Sh20 billion loan to avoid sinking into complete bankruptcy.
The airline’s troubled relations with pilots and crew have also significantly contributed to the loss.