Kenya Airways witnesses a 9-month tax loss worth over $119million

Kenya Airways recounted a nine-month pretax and after tax loss that stood at 5.97 billion shillings ($59.03 million) and 6.1 billion shillings ($60.4 million)respectively, while operating profit for the same period at 1.3 billion shillings ($12.9 million), said acting Chief Financial Officer Hellen Mwariri.

Report making rounds attributed the tax losses to the effect of the increase in oil prices, as well as the prolonged election period in the country last year that cost 54.1 billion shillings ($532 million). Additional effects of drought also affected the economic growth. Election activities contributed to a 20 percent decline in the air carrier’s domestic traffic, as well as in its East Africa markets.

Passengers number at 3.4 million in the nine months to end-December, Chief Executive Sebastian Mikosz informed.

Prior to this year, the airline reported a pretax loss for the full year to end March of 10.2 billion shillings, while after tax loss was 9.96 billion shillings ($98.7 million) with operating profit at 897 million shillings ($8.9 million).

Following a drop in Kenyan travel and increased financing cost on new Boeing jets that became the country’s biggest ever corporate loss of 26 billion shillings ($258 million) in 2016, the national airline already completed a $2 billion debt reformation in November 2017 as part of its strategy to bounce back.

However, airline plans to change its financial year to match the calendar year.