Kenya Airways goals to finalise plans to lift no less than $500 million in additional capital to broaden and enhance its fleet by the primary quarter of subsequent yr, the airline stated on Tuesday, after it reported a pretax loss within the first half.
Considered one of Africa’s three largest airways, Kenya Airways, posted a lack of 12.17 billion shillings ($94.34 million) within the first half of this yr, in contrast with a revenue of 634 million shillings in the identical interval final yr.
The airline attributed the loss to a drop in income and passenger numbers attributable to three of its planes – Boeing 787-8 Dreamliners – being out of fee for upkeep.
CEO Allan Kilavuka advised an investor briefing that one of many planes had resumed companies in July, and stated the airline was working to have a full fleet accessible by subsequent yr.
He stated the airline deliberate to determine the supply of the extra capital and get shareholders’ approval inside the first three months of subsequent yr.
“We have stated the minimal that we’re gunning for is about half a billion {dollars}, which we imagine (is) a minimal. That can deal with the fleet expansions that we’re wanting (for),” he stated.
The pretax revenue that the airline posted within the first half of 2024 was the primary it had made in over a decade.
Tuesday’s report confirmed working loss for the half-year was 6.2 billion shillings, down from a 1.3 billion shilling revenue within the first half of 2024, whereas income fell to 74.5 billion shillings from 91.5 billion shillings throughout the identical interval final yr.
Kenya Airways went into insolvency in 2018 after an enlargement drive left it with money owed reaching tons of of tens of millions of {dollars}.
It has relied on state monetary help, with the federal government paying off a mortgage of $150 million in January that the airline had obtained from native business banks.
The corporate ended 2024 with a full-year pretax revenue of 5.53 billion shillings, in contrast with a lack of 22.86 billion shillings the yr earlier than.
An enormous driver of 2024 efficiency was foreign-exchange positive factors of 10.55 billion shillings, versus a lack of 15.04 billion shillings in 2023, because the native forex strengthened greater than 20% towards the greenback that yr.
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