NAIROBI, KENYA — National carrier Kenya Airways (KQ) struck an optimistic code with shareholders last week despite a slump in profit, assuring them that the airline would return to profitability this year.
Top on the airline’s priority list is to release a report on the crash of one of its aircraft by end of October as one of its major steps towards rising from the ashes of misfortune.
“The future is bright. The challenges facing us are surmountable and we have began scaling them,” chief executive officer, Mr. Titus Naikuni told disillusioned shareholders during the firms Annual General Meeting in Nairobi last week.
“We want to put the tragedy behind us. Investigations are almost through and we will be releasing the report once the Cameroonian authorities hand it to us by mid October,” said the official.
Faced with a mound of challenges arising from run away global fuel costs, increased competition and a weakening dollar against other currencies, the airliners’ pre-tax profit dipped by 15% from $10.2 million (Ksh6.9 billion) in the year ending March 31, 2006 to $8.8 million (Ksh5.9 million) in a corresponding period this year.
The drop in earnings was despite increased number of passengers and cargo ferried by the airline within the period.
KQ carried 2.6 million passengers in the year to March compared to 2.4 million last year. Cargo tonnage grew by 10.6% to 60,932 tonnes up from 55,093 tonnes the previous year.
To mitigate against the challenges that have sliced into their profits, Kenya Airways is set to initiate a series of measures key among them adopting the use of other stable currencies other than the dollar.
“It is evident that the dollar is weakening and we are exploring other alternatives that would ensure we get value for our services,” said Naikuni.
The airline said it would continue charting to new horizons by exploring other opportunities in new and lucrative routes.
It would also seek to avail the best services to its clients to cope with increased competition posed by the entry of giant airlines like Virgin Atlantic into its hitherto dominated routes.
“We will endeavour to venture into new routes to ensure our profits margins remain upward,” he said.
