At least he reduced the loss
and operating cost

Be careful Aly Khan the tanker could just have turned 360 degrees!!

Under the current conditions only a bail out looks logical. You can't sell liabilities / capex plans. Just bamboozled how KQ will ramp up Capex/ Debt by $1B and Capacity by over 25% to fly to new places yet they are in loss territory.

KQ looks to be in serious financial difficulty than anybody would care to admit the razmattaz of new planes notwithstanding.

Our Journoz are quite a hideous lot. The BD headline of the KQ story tells it all. What is narrowing a pre tax loss from 11B to 5B. They are pretty much the same zone numbers with simmilar imapact on the balance sheet with the only difference being the magnitude.

And the way they really flog dear old KK yet KK turned from a 6B loss to a profit in less than 12 months.

Simple SFP maths. KQ owes 90 billion to lenders. It's sales is 106B. It's equity is about 28B while the company has returned a monumental loss 2 years in a row. Mgt. should stop here and fix the business, trim the fat or right size the routes and equipment because it is obvious there is some fat in the overheads otherwise the gross profit should be enough to offset the overheads. They can't fly for too long this way. In addition shut down some routes and expand latter when the business is more nimble and efficient. This is not banking, the airline doesn't have pricing power in all routes.

Pilling more debt on the 90B tells me KQ will sooner rather latter struggle to keep up with payments. Airline industry is competitive while the uncontrollable variables are many.

Well, who buys ads on TV and newspapers? KQ does but not Wazuans!

KQ is indeed a sinking tanker

1. ISIS in Iraq means brent crude oil is up

2. Travel advisories

3. New VAT on spare parts

4. Finance costs from the new dreamliners will kick in this financial year.

5. Losses from jambo jet

6. Clueless management

7. Competition

The list can go on...even at Ksh5 I can't touch this cos it can go to Ksh0.