Kenya Airways stock jumps to 9-month high

Shares of Kenya Airways jumped yesterday to Sh4.80 as investors reacted to the news of suspension of a pilots’ strike.

At the close of trading at the Nairobi Securities Exchange where the KQ stock is listed, the firm rose to the highest level since early February – a nine-month high. Intraday trading deals were significantly higher, at one time touching Sh4.95 per share before easing on increased supply from sellers out to make a quick return.

Relief of the cancellation of the strike that was scheduled to kick off early yesterday was compounded by a significant improvement in operating results that management alluded to last week. Former Safaricom Chief Executive Michael Joseph has also taken over as chairman, pending board and regulatory approval expected by next Wednesday, to inject renewed confidence.

“I am the incoming chairman,” Joseph said on Monday, after a deal was struck that allowed the withdrawal of the pilots’ strike. He was earlier seen at the airside of the Jomo Kenyatta International Airport, flanked by Captain Paul Gichinga who had issued the strike notice that has since been withdrawn.

KQ last week announced a 58.3 per cent improvement on its net profit for the six-month period ended September 30, in operating results that have been approved by the Capital Markets Authority and to be presented in an investor briefing next week.

Net losses have been slashed by Sh7 billion, the firm said further, in its plea that eventually persuaded the pilots to shelf the strike – with further intervention from State House and the transport ministry. “Kenya Airways has demonstrated its commitment to regaining its position as the Pride of Africa, by decisively reversing the downward financial performance spiral that it has been on,” KQ said in its appeal to the Kenya Airlines Pilots Association (KALPA).

Transport Cabinet Secretary James Macharia said he was convinced that the airline was making steady steps to recovery, in line with the demands made by the pilots. The airline has been restructuring its operations, including the disposal of key assets to help improve the working capital position.

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