Kenya Airways value rises by Sh10bn since flights to America were announced

The stock of Kenya’s national carrier rose by 11% last week, following the announcement that tickets were on sale for the company’s first flight to the US.

The rise in stock led to Kenya Airways’ (KQ) market cap increasing by an additional Sh9.7bn (US$94.2mn), reaching Sh98.3bn ($915.6mn).

“Kenya Airways joined the day’s top gainers on the news of the expected direct flights to the US,” announced Kingdom Securities.

“The airline’s management anticipates its daily direct flights to the United States that it launches for the first time in October to boost annual revenue by 10 per cent from 2019.”

SEE ALSO:

• Kenya Airways partners with Pesalink and Cellulant

• Kenya Airways gains Sh52.2bn in just one day

• Government and banks have 87% stake in Kenya Airways

• Read the latest issue of Business Chief, Africa edition, here

The company’s gains were predominantly recorded on 11 and 12 January, which suggests the rise was subsequent to the firm’s announcement.

This suggests the direct flight could have a very positive impact on the struggling airline.

The carrier operates a hub at the Jomo Kenyatta international Airport in Nairobi, located between the Middle East and other African countries. It hopes the hub will feed the US route.