KQ CEO Sebastian Mikosz to step down in December

Sebastian Mikosz KQ: Kenya Airways Chief Executive Officer Sebastian Mikosz will leave on December 31. The CEO who came in to help turn around the ailing national carrier resigned over what he termed as “personal grounds”.

He announced his resignation in an internal memo to the staff of Kenya Airways. His resignation, though, will be effective five months before the end of his three year contract.

“It is my personal decision and I have obviously discussed it with the board as well as my family,” he said. Mr. Mikosz noted that he had informed the Capital Markets Authority and the Nairobi Securities Exchange of his decision, in line with regulations since KQ is a listed company.

The CEO was appointed in 2017 amidst a streak of losses by the national carrier that amounted to billions of money. His signing came with hope, since he had helped turn around LOT Polish Airlines, which is the national carrier of Poland. His stay at Kenya Airways, though, has fallen short of a turn around. In its last financial results, Kenya Airways reported that it had scored a net loss of Sh. 7.5 billion.

READ MORE on Sebastian Mikosz KQ: The salary and allowances Sebastian Mikosz earns as KQ CEO

This loss for the financial year 2018 represented an increase of 17.76 per cent.

In the financial full year 2017, the national carrier made a full year loss of Sh. 6.41 billion. This latest loss has dimmed hopes of the national airline becoming profitable in the near future. It also dents the on-going efforts that are aimed at helping the carrier recover.

During the financial year, the company’s revenue rose sharply by 41.32 percent largely driven by more passenger bookings to Sh. 114.18 billion from Sh. 80.7 billion a year earlier.

KQ’s total operating costs also jumped 43.96 percent to Sh. 114.8 billion from Sh. 79.7 billion in the previous financial year.

In a statement, the airline attributed the loss to volatile fuel prices, which saw its costs rise by 73.6 per cent from Sh19 billion incurred in the 9-month period in 2017 to Sh. 33 billion in the full year ended in December 2018.

“I would like to highlight some changes to our financial reporting. Following the Directors resolution in 2017 to change the Group’s year-end from March 31 to December 31, the 2018 financial statements cover a twelve-month period from January 1 to December 31, 2018, while the financial statements for 2017 cover a nine-month period from April 1 to December 2017,” said Michael Joseph, Chairman Kenya Airways.

“This, therefore, means that the 2018 results are not directly comparable with the 2017 results as it is a representation of 12 months against the 9 months in 2017,” he added.

Latest Posts