Kenya Airways has registered some good news. Africa’s sixth largest airline has significantly cut its losses in the first half of the year to Sh9.9 billion from Sh11.5 billion same period last year.
It has also registered high revenue growth of Sh48.1 billion in the same period. CEO Allan Kilavuka and his team need to be congratulated for implementing a turnaround strategy that’s yielding positive returns despite all the challenges.
Given the significance of KQ to the Kenyan and African economies, the restructuring towards positive growth trajectory must continue. The government must now begin to consider how to support the airline so it can return to profitability soonest.
KQ's financial performance continues to be volatile, with increasing competition from regional carriers such as Ethiopian and Rwandan airlines, and Middle East carriers such as Emirates, Etihad and Qatar airlines, compounding its financial woes.
It's time the government reviews decisions to allow foreign airlines to fly directly to key local source markets like Mombasa. This strategy was ill-advised because it eats into KQ’s territory.
The airline on its part needs to continue finding creative solutions to its internal problems even as it deals with external factors or changes in the business environment.
KQ’s turnaround strategies must continue to be applied to enhance the organisation's chances of survival and achieve sustainable performance and recovery in the long term.
Quote of the Day: “Failure is the condiment that gives success its flavor.”
Truman Capote
The American author died on August 25, 1984