Feb. 1 (Bloomberg) -- Kenya Airways Ltd., sub-Saharan Africa’s third-biggest carrier, dropped for a third day on concern about increased competition and lower earnings.
The stock dropped 2.3 percent to 19.15 shillings, the steepest decline in more than two weeks, by the close of trading in Nairobi, the capital.
Kenya Airways said on Jan. 27 annual profit will drop at least 25 percent after the European debt crisis, rising fuel prices and political unrest in Egypt and Nigeria curbed revenue. Airline entrepreneur Stelios Haji Ioannou’s easyGroup Holdings Ltd. signed an agreement in December with Rubicon Diversified Investments Plc to set up a low-cost African carrier.
“There has been a stream of negative news for the airline,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said by phone today. “The news by Rubicon is also weighing on investors’ minds that a huge competitor is looking at the African market.”
--Editors: Linda Shen, Ash Kumar
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