Rising costs have sunk Kenya Airways deeper into the red, after it reported a Sh12.9 billion loss for the financial year ended December 2019.
The fact that the loss was reported in the year before Covid-19 pandemic grounded the aviation sector promises the airline more painful days ahead.
Despite growing its revenues by double digits, the national carrier widened its losses by a staggering 71 percent from the Sh7.5 billion loss it reported in the same period in 2018 to the current Sh12.9 billion.
This is the last year of the Polish expat Sebastian Mikosz whose reign at the airline coincided with some of the worst turbulence to hit the airline. By the time he left, earlier than his term, the airline’s financial health was in the intensive care unit and is surviving on government bailouts. The Covid-19 pandemic could not have hit at a worse time for the national carrier.
In a statement to the Nairobi Securities Exchange (NSE) on Tuesday, the airline said the total revenue for the group increased by 12.4 percent from Sh114 billion in 2018 to Sh128 billion last year.
“The growth was due to improved passenger, cargo, ancillaries, and other revenu