Kenyan reports losses - but adds more codeshares

Kenya Airways recorded a net loss of Kenyan shillings (KSh) 4.79 billion ($55 million) in the first half of 2012, compared with a net profit of KSh2.03 billion in H1 2011.

Operating loss for the six months to 30 September totalled KSh5.53 billion, compared with operating profit of KSh1.02 billion last year.

Revenue declined by 9.3% to KSh49.8 billion, while total expenses rose 2.7% to KSh55.4 billion.

Fuel costs remain the airline's largest expense at 38.7% of total operating costs, though this is down slightly from 39.3% last year. The cost of jet fuel per gallon in US dollars has risen by 3.6% over the same period, Kenya Airways says.

Passenger revenue declined from KSh48.6 billion in 2011 to KSh43.6 billion this year, primarily due to decreased European passenger numbers, network-wide pressure on yields and the strong Kenyan Shilling.

Meanwhile the airline has signed a codeshare agreement with Vietnam Airlines as it works towards expanding its Southeast Asian footprint.

Under the agreement, Kenya Airways passengers will be able to travel to Hanoi and Ho Chi Minh City daily via Bangkok.

In return, Vietnam Airlines will place its code on Kenya Airways' daily service between Bangkok and Nairobi.

The latest agreement brings to 17 the number of codeshare deals Kenya Airways has signed with international carriers.