Wednesday, June 26, 2013

Kenya Airways - Citibank projects a massive loss in 2013-14

http://www.businessdailyafrica.com/Corporate-News/KQ-eyes-cost-savings-to-restore-profit-/-/539550/1895744/-/6chwxf/-/index.html

Citigroup projects the airline to post a net loss of Sh3.1 billion in the current financial year ending March 2014 on higher costs that will wipe out sales.
KQ’s sales are expected to rise 15.3 per cent to Sh114 billion but Citigroup says expenses such as direct costs and net interest payments will rise to Sh118.5 billion, offsetting sales.
The national carrier is projected to return to profitability in the year ending March 2015 with a net profit of Sh618 million, on which Citigroup does not expect it declare dividends.

Wow! The airline business is tough and as Warren Buffett has said... stay far, far away!

7 comments:

bankelele said...

There has to be some radical surgery for the airline to be profitable - changes to key staff, and some fleet decisions

andruid said...

I wonder how differently things would have panned out had those dreamliners shown up on time? Anyway tough days ahead.

Verena said...

This is cool!

Reflections said...

Was this . Don't share https://econblogglobal.org/2016/10/17/future-of-kenyan-banks/

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