- Kenya Airways (KQ) has warned of a 25 percent decline for the financial year ending 31 March 2009 in its profits blaming it on the current global economic crisis. However it said the airways is expected to remain profitable although it is to yield 25 percent less than last year.
The airways has also blamed poor performance on the 2007 and early 2008 post-election violence and high fuel prices that hit a record high of US $147 a barrel last July, sparking riots in many African states including Kenya.
According to a communiqué issued by the KQ Chairman Evanson Mwaniki today, he said KQ had hedged part of its fuel consumption at prices higher than the market, and this coupled with the weakening of the Kenyan shilling against the US dollar would impact negatively on their profitability.
Mr Mwaniki also blamed the volatility of the local currency for the reduced profit margins saying that a strong shilling early last year magnified the decline in profitability of the airline, while a weak currency in the recent past has seen the company pay higher prices for fuel.
"The Board of Directors, at this time, expect Kenya Airways to remain profitable but the profits would be less than the previous year," said Mr Mwaniki in a statement. The anticipated decline in profitability is part of the global financial crisis that saw the aviation industry register a decrease in passenger numbers.
News reports said the International Air Transport Association has predicted that globally, airlines are likely to make a combined loss of US $5 billion in the 2008/2009 financial year and a three percent passenger traffic decline in 2009/2010.
Meanwhile, Kenya Airways intends to start flying to Luanda as early as possible with a view to strengthening the bilateral relations between the two countries, Angola's official news agency ANGOP reported on Saturday.
Kenyan Foreign Minister Moses Wetangula was quoted as saying that Luanda is the only key capital city of an African country to which Kenya Airways does not fly to, although there is a big potential market in terms of financial incomes the route presents.
He also said there are lots of Kenyan people who work and live in Luanda and are asking for opening the route. According to the Kenyan foreign minister, the Kenyan government is also willing to discuss with the Angolan government the possibility of opening diplomatic representations in each other's country with a view to boosting bilateral cooperation in various sectors.
afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.
afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.
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