Always wondered why their costs are so high! Financing costs have significantly reduced post restructuring but they just can't seem to be able to address the other costs
Studying their financials over the years I've always been astounded by their labour costs. They employ a lot of people, way more than expected, but it's always difficult to compare numbers across airlines due to different strategies of insourcing versus outsourcing various functions. However, it wasn't just high staff numbers, but how much they pay them. Here is an interesting comparison from financial statements:
ET 2016/17: 11,284 employees, total labour costs of Birr 4,913,587,971 = Birr 435,447 per employe (about $15,300 per employee)
KQ 2017: 3,582 employees, total labour costs of KShs 15,448 million = KShs 4.3 million per employee (about $43,000 per employee)
I find that KQ number hard to believe, but it's genuinely from their annual financial statements!