Airline giants Kenya Airways are in deeper trouble, with recent posting of a record post tax loss of KSh26.2 billion (UgShs890 billion) for the year that ended March 31, up from Sh25.7 previously.
The carrier’s foreign exchange loss surged 703.3 per cent owing to the stronger dollar, to Sh10.8 billion.
CEO Mbuvi Ngunze however says the company “broke even”.
“We broke even if you exclude one-offs,” Ngunze said on Thursday in Nairobi.
He added, “Without fluctuation of the exchange rate we would have reduced the loss to KSh16 billion compared to the KSh26 billion we have reported.”
The chief executive told stakeholders during the announcement that the airline was growing despite the tough times.
Kenya Airways had a KSh5 billion fuel burn-off benefit after selling its Boeing 737-300.
Passenger numbers rose in by five per cent in 2015 from 4.17 million the previous year to 4.23 million.
Acting finance director Dick Murianki said: “We had borrowed short term loans at expensive rates. Our financing costs went up 53.7 per cent.”
KQ plans to lay off 600 employees.