PROFIT WARNING

KQ boss to get 35% pay cut in wake of tough economic times

In Summary

•The executive committee members have also agreed to take a 25% pay cut from the same date.

KQ flight at Moi Airport Mombasa
KQ flight at Moi Airport Mombasa

National Carrier, Kenya Airways's CEO Allan Kilavuka has agreed to a 35% pay cut to reduce costs in a bid to optimise operations.

The airline on Wednesday also said the Board of Directors agreed to forego their monthly fees and sitting allowances with effect from April 1.

The executive committee members have also agreed to take a 25% pay cut from the same date.

 
 

The national carrier has been affected by the coronavirus pandemic following a suspension of flights on the China route.

The national carrier had last year issued a profit warning.

Last year, KQ reported a net loss of Sh5.9 billion, up from Sh5.1 billion in 2017.

 

In a statement to investors last year, KQ chairman Michael Joseph said although the airline has realised improved revenue, profitability was constrained by the increased competition in the airline area of operation, which has increased pressure on pricing in order to remain competitive.

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