NAIROBI, March 21 (Xinhua) -- Kenya's national carrier Kenya Airways announced on Wednesday that it plans to get out of its loss-making streak this year following new routes to Africa, the United States and easing of Kenya's political situation.
The airline announced a net loss of 61 million U.S. dollars for nine months ending December 2017 as it said that subsequently, its financial year will end on Dec. 31, aligning itself with the financial accounting cycle of listed companies at the Nairobi Securities Exchange.
Kenya went through a fluid political situation in most part of 2017, with two presidential elections, one of which was boycotted by Raila Odinga, the main challenger of President Uhuru Kenyatta.
The political uncertainty resulting from the elections fallout has however ended on March 9 following unity talks between the president and Odinga, a move analysts have said will help improve economic growth.
Sebastian Mikosz, the airline's Chief Executive Officer said at an investor briefing in the capital Nairobi, that the loss was also attributed to rise in fuel costs, with an increase of 14 percent on that expenditure.
"The 2018 outlook is good. In October, we start direct daily flights to New York, non-stop flights to Cape Town and direct flights to Mauritius," he said.
Mikosz said the full financial impact of the new U.S. route will be felt in 2019. "We expect a revenue boost of up to 10 percent because of this new route," he said.
The route is also expected to result in an increase in the number of American tourists visiting Kenya, which will in turn boost the airlines domestic traffic as it flies tourists within the collaborating markets of Kenya, Uganda and Rwanda, according to Kenya Tourism Board officials.