Kenya Airways share strengthens

[MK254]

Shares of Kenya Airways (KQ) rose 7.61 percent during the day’s trading session to close at Sh4.95 up from Sh4.60 on Monday.

The strengthening of the airline’s share comes a day after pilots suspended their planned strike demanding management changes.

Traders attribute the share appreciation to improved fortunes at the airline which has already announced that its half year loss has reduced to just Sh5 billion compared to a loss of Sh12 billion a year earlier.
The share is expected to strengthen further in the coming weeks, with government assurance of management and board changes to get the airline back to profitability.

Transport Secretary James Macharia said there was a plan in place to ensure smooth transition once the changes are made.

“KQ is a listed company so there are things we cannot say in public but let me assure Kenyans that we have done all that is necessary. We commissioned a forensic audit by Deloitte and Touche and committed to take action including handing over that report to the investigating agencies,” Mr Macharia said on Tuesday.

Already former Safaricom Michael Joseph has been appointed as the board chairman and is expected to charter the way forward in injecting fresh faces at the senior management level.

Kenya Airways has been struggling to return to profitability after years of losses caused by a slump in tourism and high financing costs caused by the purchase of new planes.
https://citizentv.co.ke/business/kenya-airways-share-strengthens-to-sh4-95-145727/

 

[Depay]

This Phoenix will rise again

 

[eddy25r]

Hi hapa hakuna mtanzania anataka ku comment ...they expected it to fail due to looses .I like how KQ quickly adjusted to prevent looses na tayari wanaanza kuingiza profits

 

[Depay]

We couldn't let KQ fall.... It is our Pride

 

[Mwanzi1]

Hi hapa hakuna mtanzania anataka ku comment ...they expected it to fail due to looses .I like how KQ quickly adjusted to prevent looses na tayari wanaanza kuingiza profits

FYI KQ is listed in Tanzania too. And Tanzanians own a slice of it.

 

[eddy25r]

Yah .That means even tanzanians ,ugandans and kenyan investors have a say in the board decisions.This is what has made the airline maintain its position in Africa despite its looses.If it was fully government owned it could have faced same fate as Air uganda and Air Tanzanai .Iam sure even the new ATCL will not be able to grow unless the government opens it up to investors

 

[Mwanzi1]

Yah .That means even tanzanians ,ugandans and kenyan investors have a say in the board decisions.This is what has made the airline maintain its position in Africa despite its looses.If it was fully government owned it could have faced same fate as Air uganda and Air Tanzanai .Iam sure even the new ATCL will not be able to grow unless the government opens it up to investors

You can't just jump to investors with a loss making company, I'm even KQ with the loss they make now, any investors will want to use that information to cut the value and buy it cheap. It will come this time ATCL will sale it's shares, in fact there is law just been introduced which will force companies with certain assets value to sale part of their share in stock market.