Kenya Airways net loss shrinks by 40.7% to Kes22.7Bn
Flag carrier Kenya Airways has narrowed its net loss position for the year ending December 2023 by 40.7 percent to Kes22.7 billion.
This was partly attributable to a 53 percent surge in operating profit to Kes178.5 billion largely as a result of a mixed impact of higher passenger numbers and increased deployed capacity during the year, the company said.
With the shilling starting to strengthen against the US dollar, the outlook for this year is forecast to be more positive, CEO Allan Kilavuka said.
“For the first time in seven years, KQ has recorded an operating profit of Kes10.5 billion. This is an improvement of Kes16 billion over the previous year and the first full-year operating profit since 2017,” Board Chairman Michael Joseph said during the release of the company results.
“This reaffirms the airline business is operationally viable and that all efforts put in place by management and staff to return the airline to profitability are bearing fruit,” Joseph added.
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Passenger traffic
In the period, Kenya Airways reported 35 percent increase in passenger traffic to 5 million. Company CEO Allan Kilavuka noted that the airline’s focus was on improved customer experience and operational excellence.
KQ’s On Time Performance shot up to 76 percent at the end of 2023 from 53 percent at the beginning of the year, a feat that saw the airline rank as Africa’s most efficient carrier.
“Going forward, Kenya Airways will continue building on the gains made in the airline’s turnaround strategy, Project Mawingu. Along with this, in the near term, the focus is on completing the capital restructuring plan whose main objectives are to reduce the Group’s financial leverage, fund growth, and increase liquidity to ensure the company can operate at optimal levels,” Mr Kilavuka added.
