November 6, 2012 / 6:18 AM / in 5 years

Kenya Airways swings to first-half loss of 6.589 bln shillings

NAIROBI (Reuters) - Kenya Airways Ltd posted a pretax loss of 6.589 billion shillings in its first-half ended September from a profit in the year-ago period, hobbled by higher costs and lower revenue, it said on Tuesday.

Kenya Airways Boeing B777-200ER plane is seen during a media tour at their maintenance hangar in Nairobi, October 2, 2008. REUTERS/Antony Njuguna

The airline, which is 26.73 percent owned by Air France-KLM and 29.8 percent owned by the government, is ranked among the largest carriers in sub-Saharan Africa alongside South African Airways and Ethiopian Airlines.

Finance Director Alex Mbugua told an investor briefing the airline posted drops in the number of passengers flown, revenue per kilometer seat as well as passenger yields.

Revenue for the period fell 9.3 percent to 49.8 billion shillings, Mbugua said.

The situation was worsened by an unfavourable exchange rate as well as 826 million shillings of one-off costs related to job cuts expected to save the airline 1.2 billion shillings a year.

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