NAIROBI — Kenya Airways reduced first-half losses by 20%, helped by cost cuts, and will start flights to New York next year, its new chief executive said on Friday as the company presses ahead with its turnaround.
The airline, part-owned by Air France KLM, completed a $2 billion debt restructuring this week as part of turnaround plans after a slump in Kenyan travel and high financing costs on new Boeing jets sent it to the country’s biggest ever corporate loss — 26 billion shillings ($251 million) – in its 2016 financial year.
Shares in the company were suspended from trading on Wednesday for two weeks while it prepares to convert some loans into equity as part of the debt restructuring.
“There is still room to improve but there is growth and that is a good signal for us,” said CEO Sebastian Mikosz at an investor briefing after the company reported a pre-tax loss of 3,77 billion shillings for the six months to September 30. — Reuters
