You can average down the cost of shares of a good company with strong earning growth momentum but to average down on a 'wayward company' is tatamount to throwing good money after bad money. Chaps on KQ, here is free advice, sell your KQ's at 14 and buy ARM and in 2 years you will have recovered at least 50% of your KQ losses assuming you bought at 30. There is potential of recovering 100% of this loss as well. Otherwise average KQ down and you will find yourself swelling your losses.
I posit that KQ has been buying revenue (market share) in Africa and some European routes and this is coming back to bite. How is it that KQ opens routes, gets additional revenue but operating costs increase more than the revenue increases. Also at 60% OTP, the products must be poor quality. Why open routes that don't make money and desecrate the existing good products, surely OTP has to be 95% and above. Why doesn't Titus also show the OTP of EK, LH etc..
It's cheap politics to compare KQ's sums to those of EK, AF/KL, SQ, LH. These airlines ply routes more competitive and with serious substitute products (ryanair, Easy-j, Kingfisher, air asia etc). Their pricing is capped. Compare that to KQ's largely uncapped pricing who charge immoral charges in African routes. Africa makes up 55% of KQ revenue( NBO - ENBE - $500+, NBO - Kinshasa - $ 1,000 etc). If KQ was competing with these companies they would have sold the HQ piece of land a long time ago having left the airline business. KQ is doing business in a niche market - africa but that will soon disappear.
The results suggest KQ profits are largely accounting and from treasury operations. The currency movement of 11% for a 1.5% suggest that with a stable currency KQ would probably have made a sizeable loss. At least 95% of KQ revenue is dollarized while only fuel and fleet ownership costs on the costs side are in dollars. On net basis, KQ made about 6B from accounting conventions. Add to that 2.5B from unwinding of fuel hedges and the 0.5B from PW then it's obvious KQ would easily have been in the red by more than 5B. The ROE is also equally appalling, dropping to 7% from 15%. I will await a surprise from Dr T on this because I don't see anything good coming from this.