KQ halves full year loss to Ksh.15.9 billion

National carrier Kenya Airways (KQ) has more than halved its 2021 full year net loss to Ksh.15.9 billion.

The carrier has posted a 56.1 per cent trim to its net losses in the year from a historical record loss of Ksh.36.2 billion in December 2020.

KQ’s improving net loss is largely attributable to improving revenues with the company’s turnover rising by 33 per cent to Ksh.70.2 billion from Ksh.52.8 billion.

This is on the back of an 11.5 per cent growth in capacity during the year with the number of passengers lifted for instance increasing to 2.2 million from 1.8 million a year prior.

Kenya Airways meanwhile recorded a 29 per cent increase in cargo lifted to 63,726 tons from 49,418 tons previously.

At the same time, Kenya Airways has cut its overall operating costs by 3.6 per cent to Ksh.86.2 billion from Ksh.89.4 billion.

The cost cuts cover Ksh.11.6 billion in savings from fleet ownership and Ksh.902 million from a slowdown in new staff hires.

The management of Kenya Airways has attributed the improved results to efforts to diversify its revenue streams alongside the cost containment measures.

“In 2021, we still felt the impact of the COVID-19 pandemic but we still managed to increase our capacity by 11.5 per cent from 2020. We have weathered the storm to post a much improved performance,” noted Kenya Airways Chairman Michael Joseph.

“There is definitely an improvement in 2021 compared to 2022 but we are not where we ought to be when you compare our performance to 2019 which presents our pre-pandemic level,” added Kenya Airways Chief Executive Officer Allan Kilavuka.

KQ is backing itself to deliver another improved performance in six months to June 2020 on revenue growth and optimization and through partnerships.

During the 2021 calendar year, the carrier received Ksh.26.8 billion ($233.6 million) in support from the National Treasury.

Future exchequer support for the national flag carrier is expected to be pegged on improving performance metrics.