National Carrier Kenya Airways' profits before tax have dropped to Ksh. 2.15 billion down from Kshs. 5 billion the previous period. Speaking at the release of the results Thursday, Group CEO Titus Naikuni attributed this drop to high fuel prices that made operations for the airline industry costly.

In a statement read by Naikuni, Kenya Airways sustained profitability in the financial year ended 31 March 2012 through hard times for the airline industry. Factors that negatively impacted the airline industry in the period included high fuel prices, euro-zone crisis and a generally weak economy in the West.

The airline carried over 3.6 million passengers by the end of March 2012 indicating a year-on-year growth of over half a million passengers. Kenya Airways achieved an all time high turnover of KShs 107.9 billion which represents a 26% increase on prior year turnover of KShs 85.8 billion. The Profit after tax realised was KShs 1.66 billion compared to KShs.3.5billion the previous year. This represents a net profit margin of 1.5%, down from 4.1% achieved in 2010/11. Earnings per share reduced to KShs 3.58 from KShs 7.65 reported in the prior year.

The airline had a Rights Issue offer which opened on 2 April 2012 and closed on 27 April 2012. The proceeds from the Rights Issue totalled KShs.14.5billion and will form part of pre-delivery payments for future fleet acquisitions consistent with the airline's 10 year strategic plan. The airline has ordered 9 Boeing 787-dreamliner aircraft with the first delivery expected in the last quarter of 2013.