Kenya Airways reports strong FY2011 result

Kenya Airways FY2011 operating result jumped 216% year-on-year, as the carrier reported an operating profit of USD67 million and a net result of USD40.7 million. It anticipates strong traffic demand in 2011, although pressure on yields due to escalating fuel prices is expected. The airline will therefore continue opening new routes on a selective basis.

Kenya Airways financial highlights for the 12 months ended 31-Mar-2011:

  • Total revenue: USD988.3 million, +21.3% year-on-year;
  • Total costs: USD921.4 million, +16.1%;
    • Fuel: USD68.6 million, +31.7%;
    • Landing, handling and navigation: USD465.6 million, -0.5%;
    • Aircraft maintenance: USD375.0 million, +35.9%;
  • Operating profit: USD67.0 million, +216%;
  • Profit before tax: USD57.6 million, +87.3%;
  • Profit after tax: USD40.7 million, +73.9%;
  • Total assets: USD906.7 million, +7.5%;
  • Bank and cash balances: USD83.5 million, +18.5%;
  • Total liabilities: USD640.2 million, +4.3%;
  • Passenger numbers: 3.1 million, +8.5%;
  • Load factor: 69.2%, +2.7 ppts;
  • Breakeven load factor: 63.6%, +1.6 ppt.

* Based on the conversion rate USD1 = KES86.85

Jazeera Airways dropped 3.1%, its largest single-day fall since 19-May-2011. Nomura Holdings cut its rating for Kuwaiti LCC from “neutral” to “reduce” and had its price estimate lowered 6.7%.

Also in the Gulf region, Nomura Holdings cut its rating for the UAE's Air Arabia from “buy” to “neutral” and lowered its price estimate by 18%. Air Arabia shares touched 69.9 fils, the carrier's lowest level.

Selected MEAAD daily share price movements (% change): 3-Jun-2011