Kenya Airways’ Half-Year Loss Soars to Ksh.21.7B
In the first six months of 2023, Kenya Airways (KQ) more than doubled its half-year losses from Ksh.9.8 billion to Ksh.21.7 billion after taxes.
The airline stated that the losses were exacerbated by the Kenyan shilling’s fluctuation against the dollar, which resulted in an estimated Ksh15 billion in foreign exchange losses.
Kenya Airways Chief Financial Officer (CFO) Hellen Mathuka stated, “The primary cause of the losses has been the weak shilling versus the dollar, which has caused us to pay an additional Ksh.15 billion in dollar-denominated obligations.”
On the positive side, the airline has reported an operating profit for the first time in six years, with CEO Allan Kilavuka noting that if the shilling had remained stable, they would have lost only Ksh 600 million.
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This is the first time in six years that we have realized an operating profit, indicating that we are on the correct track.
Kilavuka remains optimistic about the future, expressing confidence in the airline’s strategy for revival despite being burdened by historical debts.
He added that they have increased flight frequency by 28% and are planning to increase flight frequency on certain routes, including those to London and New York.
“We plan to increase our frequency in key markets where demand has increased, and we have also partnered with other carriers to expand our network,” the KQ CEO explained.
Additionally, the airline’s on-time performance improved from 58% in 2022 to 76% in 2023, with the airline striving for a global best practice standard of 80% on-time performance.
Kenya Airways’ Half-Year Loss Soars to Ksh.21.7B
