Kenya Airways reports improved performance in 1HFY2014, loss in 2HFY2014

Kenya Airways attributed (25-Jun-2014) improved performance in FY2013/14 to stablisation in Eurozone economies, favourable jet fuel prices and a stable business environment in Kenya in 1HFY2013/14. The airline recorded a loss in 2HFY2013/14 driven by reduced passenger revenues caused by the fire at Nairobi Jomo Kenyatta International Airport in Aug-2013, terrorist incidents in Kenya from Sep-2013 and subsequent travel advisories issued by other countries. The carrier attributed increased turnover during the year mainly to increased passenger revenue and reported improved passenger yield through better revenue management. Operating costs decreased, driven mainly by lower fuel prices and procurement savings in maintenance contracts. The airline is on course for its fleet renewal and turnaround programme. The carrier expects to take delivery of one new Boeing 787-8 each month from Jun-2014 to Oct-2014, take delivery of a third 777-300ER in Jul-2014 and remove its 767-300ER fleet from service by Nov-2014. The security situation in Kenya remains a concern for the airline and measures are being taken to rationalise capacity in affected markets. [more - original PR]