Kenya Airways posts record 252 mln USD annual loss

One of Africa's largest airlines Kenya Airways on Thursday announced a record high net loss of 252 million U.S. dollars for the financial year ending March 31.

It is a big leap from a 33 million U.S. dollar loss the airline recorded in the previous financial year.

Kenya Airways Managing Director Mbuvi Ngunze attributed the massive loss mainly to stiff competition with the Middle East airlines and high operating costs.

"The costs associated with the acquisition of the new Boeing 787 Dreamliners were responsible for the huge loss," Ngunze told a investor briefing in Nairobi.

It is also partly blamed on a decline in tourists visiting the country as some Western countries had issued travel advisories following attacks by Somalia-based militant group Al-Shabaab.

The airline is now looking for a 200 million U.S. dollar loan from Cairo-based African Export-Import Bank as part of its scheme to remedy the business, Ngunze revealed.

It also plans to sell seven out of its current fleet of 54 aircraft.

"We hope to raise at least 100 million U.S. dollars from the old aircraft and the proceeds will be used to finance operations of the company," said Kenya Airways Finance Director Alex Mbugua.

Mbugua said the carrier had engaged a consultant to help reduce its current debt of over one billion U.S dollars.

In another development, the airline is reviewing its flights, having stopped the flights to New Delhi, India, but resumed flights to Sierra Leone and Liberia.

Flights to the two West African nations were suspended due to Ebola outbreak. Endit