National carrier Kenya Airways has today announced that it has reported a loss after tax of Ksh. 23 billion for the year ended December 31, 2023. This is 41% reduction from the Ksh 38 billion the company reported in the year 2022.
The reduction in the net loss has been attributed to an operating profit of Ksh. 10.05 billion as compared to operating loss of Ksh. 5.6 billion in the previous period, a 287% growth.
The company’s revenue increased by 53% to Ksh. 178 billion. This is mainly due to a 43% growth in passenger numbers. Total operating costs increased by 37% while direct operating costs increased 48% in line with increase in capacity. Fleet costs were lower by 47.5% due to fleet rationalization. Overheads increased by 22% due to increase in employee costs as well as foreign currency losses caused by devaluation of the Kenya Shilling against major world currencies, especially the US Dollar.
Speaking at an investor briefing event, Kenya Airways Chairman, Michael Joseph said, “These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector. They also confirm the operational viability of the airline business and demonstrate that the management’s ongoing efforts to restore profitability are yielding positive results.”
Kenya Airways Group Managing Director and CEO, Allan Kilavuka, said, “During the year, the company’s main focus remained on improving customer experience, operational excellence, and cash conservation. These efforts resulted in the airline improving its On-Time Performance (OTP) to a high of 76% from an average low of 58% at the beginning of the year, ranking it as Africa’s second most efficient airline. Additionally, the introduction of the Asante rewards loyalty program and the revamp of KQ’s website aimed to better appreciate and reward customer loyalty while improving user-friendliness and functionality.”
He added: “The company also exploited opportunities of raising the much-needed revenues by ramping up its scheduled operations as well as through passenger charters. Other initiatives undertaken by the management included partnerships with other airlines and cost containment measures.”
Mr. Kilavuka emphasized that the airline’s top priority going forward, is to continue building on the gains made in the airline’s turnaround strategy, Project Kifaru. Along with this, in the near term, he said the focus is on completing the capital restructuring plan whose main objectives are to reduce the Company’s financial leverage and increase liquidity to ensure the company can operate at normalized levels.
“Our primary focus going ahead is dedicating ourselves to fostering innovation, nurturing partnerships, and cultivating a culture of excellence to ensure that Kenya Airways soars to new heights of success. Additionally, we will continue to engage government on recapitalizing the business to place Kenya Airways on a stronger footing and provide a stable base for long-term growth,” said Mr Kilavuka.