According to reports, competition
from within the continent has also played a major factor with Ethiopian Airlines being a major regional rival.
A closer look at the balance sheet shows the key elements which led to the airline writing a deep red bottom line, such as doubled fleet ownership costs, which rose from last year’s 12.5 billion Kenya shillings to nearly 26 billion Kenya shillings, while the company’s finance costs also doubled from 2.4 billion to 4.7 billion Kenya shillings.
Operating losses in the meantime rose from 2.7 billion Kenya shillings in 2014 to 16.3 billion Kenya shillings this year. Higher labor costs were also cited in comparison with key continental competitors, raising questions on union demands.
