– Joseph has been Kenya Airways (KQ) board chairman since October 2016
– In his first term, he oversaw a reduction of the airline’s loss from KSh 25 billion in 2015 to KSh 7.5 billion in 2018
– He said KQ had developed a five-year plan built on realistic assumptions towards revenue increase and costs reduction
Kenya Airways (KQ) shareholders have re-elected Michael Joseph as board chair for a second term with a mandate to continue steering the airline’s turnaround strategy and fly it out of loss-making.
Joseph who has been holding the position since October 2016 was re-elected during the national carrier’s 43rd annual general meeting (AGM) held at Pride Centre in Nairobi where a number of other board members were picked.
During his first term as board chairman, the former Safaricom CEO oversaw reduction of the airline’s loss from KSh 25 billion reported in 2015 to an improved position of KSh 7.5 billion loss registered in 2018 according to the airline.
“On a year on year comparison of 12 months, we managed to reduce our operational loss by kshs 2.263 billion between 2017 and 2018. This, however, does not immediately jump out of our audited results since we changed the reporting periods, thereby making a comparison of nine month in 2017 to 12 months in 2018.
We expect this to even out in our next reporting cycle but more importantly, we are all committed towards delivering continued stronger results in 2019,” Joseph told shareholders during the AGM on Monday, June 10.
The chairman disclosed KQ had developed a five-year plan built on realistic assumptions towards revenue increase and costs reduction.
“We are working towards efficient network planning including closure of unprofitable routes, launch of new prospective connections as well as upgrade or downgrade of equipment used to operate flights.
As a result of these actions, we hope to significantly increase KQ’s passenger numbers and consequently revenue levels,“ he said.
The flag carrier had undertaken various measures to ensure financial and operating efficiency aimed at enhancing business sustainability despite unfavorable market conditions.
Network expansion is among the airline’s initiatives to turn around its fortunes and grow its market share.
As of June 2019, KQ was flying to 53 destinations worldwide.
There was, however, plan to add two more routes in Europe, which would bring the total number of destinations to 55.
“One of our biggest wins in 2018 was the growth in our revenue to reach KSh 114.45 billion from KSh 106 billion in 2017. Passenger revenue, which accounts for the lion’s share of KQ’s revenues, rose to KSh 88.7 billion in the year ended December 31, 2018,” Joseph said.
He added the airline’s fleet ownership costs and overheads was KSh 114.868 billion against total revenue of KShs 114.185 billion, bringing total operating loss to Ksh 683 million.
This, the chairman said, was a strong indication the airline could in the near future be able to sustain its operations from its own internally generated revenues.
The flag carrier was recently voted as Africa’s leading airline, business class for the sixth time in a row and Africa’s leading airline, economy class for the second time in a row according the World Travel Awards 2019 report.
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