Chief Executive Titus Naikuni said the airline -- one of Africa's largest and 26 percent owned by Air France-KLM -- is upbeat on this year despite slight concerns about pressure on yields from rising fuel costs and competition.
"We are still bullish. We are looking at opening new routes ... meaning we have an opportunity to increase our revenues even further," Naikuni told an investor briefing...
"Kenya Airways' full year results were plain muscular and confirmed a strong turnaround. Titus Naikuni is the comeback kid," said independent analyst Aly Khan Satchu, referring to a fuel-hedges induced full year loss in the 2008/09 year.
"I expect further upside progress towards a price to earnings ratio of 7.5 which equates to a price target of 57.00... fuel remains a wild card."
Other analysts said investors were slightly concerned about the impact of the airline's plan to raise additional capital from the market to fund the purchase of new wide body planes to address capacity constraints, which curb earnings.
"They will do much better with the new routes that they start. It is going to be very key with their capital raising because that is what has brought a bit of investor apathy. People are asking, is it going to be a debt or equity strategy?" said Jeff Odundo, managing director of Kingdom Securities.
The six routes to be opened this year include Asmara, Abuja and Beirut. Flight frequencies will be increased on lucrative routes like Juba, Naikuni added.
In cargo, where volumes grew 2.2 percent on the previous year but growth was curbed by limited capacity, the chief executive said they are looking for a freighter to improve volume growth.
Kenya Airways signed a deal with Boeing Co. in April for the purchase of nine 787-8 Dreamliner planes, due for delivery in the last quarter of 2013. (Reuters)
