Kenya Airways improves performance but remains in the red for the 9th consecutive year
The advent of the Covid-19 pandemic has further dented Kenya Airways (KQ). Thus, the Kenyan parastatal airline, which has been loss-making since 2013, has still not pulled its head out of the water, as evidenced by its financial report for last year, made public on Friday 8 July 2022, during its 46th annual general meeting.
KQ lost 15,878 million Kenyan shillings (US$134 million) in the financial year ending 31 December 2021. This is an improvement on the 36,219 million lost in 2020. Last year, the group's turnover was Sh70,221 million (US$594 million), "despite the resurgence of various variants of Covid-19, and travel bans in various countries". This is an increase of 33%, year-on-year (USD 446 million in 2020).
KQ carried 2.2 million passengers and 63,726 tonnes of cargo last year; an increase of 25% and 29% respectively on the previous year. The company also reduced its total costs by 3.5%, with 10 billion shillings (US$85 million) spent on leasing its aircraft alone.
"We have put significant effort during the year to reshape our business in the short and long term, launching various initiatives to transform the airline, so that it becomes more competitive. Our initial focus for 2021 was to prepare operationally for the resumption of air travel as soon as the travel restrictions are lifted," says Allan Kilavuka, Kenya Airways' chief executive officer and CEO.
"In 2021, KQ is on the road to recovery as evidenced by the improved financial performance. We have continued to deliver on our commitments and as a result of the actions taken, we have made significant progress since the advent of Covid-19. We are emerging as a more balanced and resilient company with a sustainable future focused on the long-term business opportunities offered by the global aviation industry," said Michael Joseph, Chairman of the Board.
