KQ issues profit warning on persistent competition

KQ issues profit warning on persistent competition

December 18, 2019 0 By mykenyancareers
KQ BOEING 777 FLYING - KQ issues profit warning on persistent competition
The profit warning is despite the airline’s many efforts to revive it following several years of posting losses/FILE

NAIROBI, Kenya, Dec 18 – Kenya Airways has announced that its net profit for the year ended December 2019 will decline by at least 25, on account of increased competition in the airline’s area of operations.

In a statement, KQ’s Board Chair Michael Joseph says increased competition has in turn led to a rise in pricing in order to remain competitive.

“The board is undertaking several key strategic initiatives to improve the financial results of the carrier going forward both in 2019 and in the years ahead,” the notice by KQ said.

The profit warning is despite the airline’s many efforts to revive it following several years of posting losses.

The airline reported a Sh7.5 billion loss for the full year to December 2018 citing fuel costs as a major challenge.