NAIROBI, July 22 (Xinhua) -- Kenya Airways (KQ) on Thursday announced 260 million U.S. dollars loss for the year ending on March 31.
The airline said results were hit by 12.9 percent weakening of the Kenya shilling against the U.S. dollar, fluctuating oil prices and rising cost of debt caused by high interest rates on loans.
The airline's full year loss increased from the 253 million dollars reported in 2015, partly pushed up by a recalculation of the airline's assets, including land, property and equipment and losses incurred as a result of fuel cost hedging, the weakening shilling against the dollar and other costs.
"The results were achieved in a tough aviation context in which airlines continue to be weighed down by currency fluctuations, volatility in fuel prices and the changing commodity prices environment," KQ Chief Executive Officer Mbuvi Ngunze said in a statement Thursday.
The airline managed to reduce the operating loss from a massive 160 million dollars in 2015 to just 40 million dollars in 2016 as a result of the growth in passenger numbers, cost reductions, savings on the cost of fuel and generally lower direct cost of operations.
The airline has been implementing a cost-cutting strategy, which is expected to lead to staff reduction, sale of aircraft and aircraft leasing as well as additional cash injection from the airline's shareholders.
The airlines recorded 97 million dollars currency loss as a result of the strengthening of the dollar against the shilling and lost another 18.7 million dollars from the depreciation of assets.
The airline also incurred an 18 million loss from the revaluation of assets, according to the statement.
