Kenya Airways narrows half year loss to Ksh.9.9 billion
National carrier Kenya Airways (KQ) has its half year loss to June by 14 percent to Ksh.9.9 billion from Ksh.11.5 billion at the same time last year.
The loss reduction is attributable a recovery in revenue over the six months with turnover up by 76 per cent in the period to Ksh.48.1 billion from Ksh. 27.4 billion.
“The first six months of the year have been very good for KQ as we see an increase in revenues even as we are impacted by costs including high fuel prices and weaker foreign exchange rates,” noted Kenya Airways Chairman Michael Joseph.
Passenger revenues rose by Ksh.16.9 billion in the period while revenues from freight & mail and handling rose by Ksh.1.2 billion and Ksh. 650 million respectively.
“The 76 per cent increase in revenue is commendable and very exciting for us. This shows that our teams have been working hard to support our recovery,” said Kenya Airways CEO Allan Kilavuka.
The improved recovery for the carrier was mirrored by increased flight frequencies to destinations such as Zanzibar and London even as KQ faced turmoil from passenger caps in Europe including London’s Heathrow and Amsterdam’s Schiphol.
Rising costs for the airline partly offset the accelerated loss reduction for KQ which had in 2020 posted a wider Ksh.14.4 billion half year loss.
KQ costs rose by 49.1 per cent in the period to Ksh.58 billion from Ksh.38.9 billion in June of 2021.
Rising fuel costs were the largest contributor to the carrier’s steeper expenditures in the six months impacting the airline by a respective Ksh.11.1 billion.
KQ is banking on network and fleet optimization and raising staff productivity to continue with its recovery path in the second half of the year.