Loading

Kenya Airways reports a shock USD92 million loss for FY2013, but grows its Asian markets

Analysis

Kenya Airways has shocked the market with a significantly worse than expected KES7.9 billion (USD92 million) loss after tax for the year ending 31-Mar-2013 (FY2013). The loss follows a FY2012 net profit of KES1.6 billion (USD18 million) and was driven by the effects of the European economic downturn and geopolitical uncertainty surrounding a number of general elections in Africa, which caused a significant drop in demand.

Kenya Airways is Africa's fourth largest carrier and among the few consistently profitable airlines on the continent, but it issued a profit warning in Nov-2012 for FY2013, flagging its half year loss would be followed by modest full year profits which would be less than 25% of the FY2012 profit.

While the second half of the financial year was stronger, as expected, it became clear that the revised target would not be achieved when Kenya Airways reported flat demand numbers for 4QFY2013 and the KES5.53billion (USD65 million) losses in the first half would not be recovered.

Read More

This CAPA Analysis Report is 1,926 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More