Kenya Airways announcement last week of operating direct flights from Nairobi to New York has raised its stock by 11 per cent.
By close of the day on Friday, KQ had its stock up at Sh17.30 a share from Sh15.60 at the beginning of the week.
Its market cap rose by Sh9.7 billion to Sh98.3 billion last week alone.
According to Kingdom securities, the rise of KQ’s stock on Thursday and Friday was as a result of expanding its operations to the United States.
“Kenya Airways joined the day’s top gainers on the news of the expected direct flights to the US.
“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,” read a market brief from the Securities firm.
Daily flights from Nairobi to New York in the United States are slated to begin in October.
Tickets for the maiden flight from Jomo Kenyatta International Airport (JKIA) to John F Kennedy Airport in the US went up for sale since Thursday last week.
The rise in the value of KQ shares is good news for shareholders who have for a while grappled with huge losses in their holdings at the airline.