National carrier Kenya Airways is set to incur more losses compared to last year at the same period for the previous 12 months.
The parastatal has been recording huge losses despite the government's persistent efforts to resuscitate it on several occasions.
In December 2018, KQ made a whooping Sh7.5 billion losses for a period of one year, a move that attracted the attention of parliament.
In a notice signed by Kenya Airways Board Chair Michael Joseph, the troubled airline blamed the performance on stiff competition.
“Although Kenya Airways realized improved revenue growth in the year, profitability was constrained by the increased competition in the airline area of operations, which, in turn, has increased pressure on pricing in order to remain competitive,” he said.
“In addition, the adoption of new International Financial Reporting Standards (IFRS) 16 rules in 2019, has required significant adjustments to both the profit and loss statements and balance sheets for the current financial year,” he added.
Following the resignation announcement by outgoing CEO Sebastian Mikosz earlier this year, the airline on Monday appointed Jambojet chief executive Allan Kilavuka to fill the seat in an acting capacity. Kilavuka's appointment is effective on January 1, 2020.
There have been calls to merge Jomo Kenyatta International Airport which is under KAA with KQ, a move which has been resisted by MPs.
The carrier says that the losses could be 25% more than what they got last year, a move that puts it at a dangerous position in terms of recovery.