Kenya Airways Falls Deeper In Red, Records KSh 21.7b Net Loss In 6 Months

• Kenya Aways (KQ) released its half-year financial results for the period ending June 2023, reporting a 120% net loss
• The national carrier suffered a KSh 21.7 billion loss for the six-month period compared to KSh 9.8 billion reported during a similar period in 2022
• KQ Chief Executive Officer Allan Kilavuka maintained that despite the headwinds, the airline will rebound in 2024

Kenya Airways loss more than doubled to over KSh 21 billion in the first six months to June 2023.

KQ half-year financial results indicated that the airline's net loss increased to KSh 21.7 billion from January 2023 to June 2023.

KQ profit and loss

This represented a 120% loss compared to KSh 9.88 billion reported during a similar period in 2022.

The company reported an operating profit of KSh 998 million for the first time in six years.

This is a 120% growth up from a loss of KSh 5 billion reported for the same period in 2022.

Kenya Airways Chief Executive Officer (CEO) Allan Kilavuka said the company aims to recapitalise its operations for stronger footing and a stable base for long-term growth.

"We will continue focusing on our network expansion and fleet optimisation to increase our passenger and cargo capacities," said Kilavuka.

Kenya Airways revenue

The airline's revenue grew by 56% to KSh 75 billion as passenger numbers increased by 43% to 2.3 million.

The company's operating costs increased by 40%, attributed to an increase in KQ activities, while gross profit grew by 131%.

Kilavuka maintained that the ailing airline will turn around in 2024, thanking the staff, customers, the government and partners for their support.

In the full year ending December 2022 results, KQ loss more than doubled to KSh 38.3 billion.

The net loss increased from KSh 15.8 billion, with the national carrier attributing it to fluctuations in the foreign exchange market, debts and high fuel prices.

Kilavuka noted that if contributing factors such as high fuel prices at 160% and forex losses are balanced, the national carrier could return to profitable operations in 2024.

"If you remove the impact of the forex losses and the abnormal fuel cost increase at 160%, we would have made an operating profit," said Kilavuka," he noted.