Kenya Airways plunged into deep losses following a slump in tourist traffic following travel warnings over terror threats.
The carrier incurred an operating loss of 16.3 billion Kenyan shillings (Kshs) in the year to March from a loss of Kshs 2.7 billion in the previous 12 months.
The overall loss came in at Kshs 25.7 billion – its biggest annual loss – despite passenger carryings rising from 3.7 million to 4.2 million.
Kenya Airway has secured a bank agreement for a $200 million loan to support it as a commercial action plan is accelerated to improve revenues.
The airline invested in five Boeing 787 Dreamliners and five other aircraft as part of a fleet renewal scheme in the past year.
But chairman Evanson Mwaniki said: “These investments, however, coincided with a difficult business environment driven by the incidences of terrorism in the region together with adverse external factors like west African Ebola crisis and the effects of travel advisories.
“These factors cumulatively had a negative effect on the Kenyan tourism and aviation sector.
“As a result the operational and financial performance of the airline for the period under review has been adversely impacted.”