BUSINESS, MARKETS

Kenya Airways Records Ksh9.9 Billion Loss in Six Months

Kenya Airways has cut its loss for the the first half of 2022 by 14.5% to Ksh9.9 billion, compared to the Ksh11.5 billion loss posted in the corresponding period last year.

The national carrier significantly increased its revenues to Ksh48.1 billion, up 76 percent from Ksh27.4 billion in H1 2021. The uptick in revenue is an indicator of the continued recovery of the aviation sector which has been hit hard by Covid-19 over the past two years. KQ uplifted a total of 1.61 million passengers in the first six months of 2022, an 85% increase compared to 0.87 million passengers in H1 2021.

The airline last reported a profit in 2012 when it closed the year with net earnings at Ksh1.66 billion.

Kenya Airways saw operating costs surge in H1 2022, reaching Ksh53.1 billion up from Ksh34.6 billion in H1 2021. KQ Board Chair Michael Joseph noted that the global increase in the price of aviation fuel in 2022 had impacted the airline’s overall performance, as had lingering Covid-related travel restrictions around the world.

“The opening of borders worldwide has led to quick rebounds in some key markets. Lingering travel restrictions in some markets have limited the recovery. It is also important to note that these results were further affected by the high price of aviation fuel which is over 65% more than last year,” he stated.

Kenya Airways CEO Allan Kilavuka stated that the carrier would continue to leverage innovation and diversification for long-term recovery and growth. In recent months, Kenya Airways has been engaged in activities including signing a Ksh13 billion deal to secure 40 flying taxis and setting up a drone cage for training and testing of drones and drone equipment through its Fahari Innovation subsidiary.

“The industry is experiencing recovery. Our focus is to ensure that we strengthen our operational resilience through innovation and diversification to deliver great and reliable services to our customers. We have transformed the airline during the pandemic, enabling us to emerge with renewed strength, underpinned by a product network and service that customers value.” he stated.

Maintaining a positive outlook, Kenya Airways further touted projections by the International Air Transport Association (IATA) which is confident global airline passenger numbers will reach 83% of pre-pandemic figures in 2022.