Recent labor disputes demonstrate employees’ leverage over KQ’s operations and increase doubts about a return to profitability for the East African airline.
African airlines have been making news of late.
FastJet (RUBI:LN), a new airline backed by the head of EasyJet, will launch in Ghana in a matter of months. And, in June, Kenya Airways (KNAL:KN) concluded a capital-raise for the purpose of doubling its fleet of planes by 2016.
Both news items would seem to be bullish indicators for airline stocks.
Should investors be hopping on board or cooling their jets?