Written By Mary Mumbua 📝
Kenya Airways CEO Allan Kilavuka announced that the company’s board of directors has authorized a strategy to hedge prices for 35% of the airline’s fuel consumption.
The CEO noted that this is part of the airline’s cost-cutting measures and that discussions with the African Airlines Association on bulk fuel purchases are already underway.
Bloomberg quoted CEO Kilavuka to have said that “this is the last shot at making sure that we have a concrete, measurable, realistic structure that will be successful for the airline… We will look for counterparties when the fuel price stabilizes and determine how much of our fuel, we want to hedge so that we mitigate against the volatility.”
Since 2012, when it last posted a profit, the national carrier has been struggling financially.
It has also reported losses over the last nine years, a condition aggravated by the COVID-19 pandemic.
The company has also relied significantly on government bailouts, with the Kenyan government announcing earlier this year that it would invest $176 million in the troubled airline.
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