Most of the KQ ticket prices filed in its system were below the minimum seat cost as per its finance records. KQ issued more than 7 million seats between 2012 and last year at below price, resulting in a loss of $611.6 million.

“Our analysis of the Europe, India and Dubai routes revealed that up to 80 per cent of the seats were sold on promo or low yielding classes. This is a pointer that the revenue management practices at KQ may not be effectively managed to maximise revenue yields,” the auditors said.

The airline was also accused by the auditors of allowing its staff to void, refund and reissue tickets, causing a revenue loss of $12 million.

“Some of the changes included numerous occurrences of overbooked tickets, where staff with access to the Amadeus system would reopen closed fares and enable overbooking of tickets in lower fares,” the report states.

Travel agents were also accused of overcharging the premium on ticket prices to the airline’s corporate clients, making its tickets non-competitive in the market. For example, in 2014 and 2015, travel agents overcharged corporate clients by $312,650.