Corporate

KQ loss more than double to Ksh.38.2 billion

Kenya Airways (KQ) profit loss more than doubled when it posted Ksh.38.26 billion in full-year results for 2022.

The loss grew 1.4 times from Ksh.15.87 billion ($120.55 million) posted in 2021 and took the national carrier’s accumulated loss to Ksh.172.68 billion ($1.3 billion).

The results were announced during a virtual investor briefing, on March 27.

Costs grew from Ksh.86.4 billion ($656.29 million) to Ksh.155 billion ($1.18 billion), mainly driven by rising fuel prices. Other direct operating costs shot up due to increased capacity.

However, the board said the airline was on course to hit break-even point this year and profitability by 2024; something it has not done since 2012.

Kenya Airways saw its total revenue increase by 66 percent to Ksh.117 billion ($888.73 million) as passenger numbers rose by 68 percent to 3.7 million and cargo business uplift increased by 3.5 percent to 65,955 tonnes.

The State last year took over the Ksh.69.01 billion ($525 million) debt it had guaranteed Kenya Airways after the airline defaulted on payment.

Last month, in announcing a multi-million dollars loan for Kenya, the International Monetary Fund (IMF) highlighted that “addressing vulnerabilities” at Kenya Airways and utility Kenya Power was “urgent”.

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

Related Articles

Back to top button