Kenya Airways has reported a Sh38.2 billion loss before tax for the full year ending December 31 2022, weighed down by high fuel cost as well as depreciation of local currency.

The loss grew 58.2 percent from Sh16 billion in a similar period in 2021.

“However, without the significant events of 2022, which included an increase of fuel cost by 160% year on year due the spike in fuel prices, the financing costs referred to above and the impact of the devaluation of the Kenya Shilling against major world currencies, the airline would have achieved a break-even profit before tax and reported a profit of Kshs 13 billion at operating level,”

“This means that the airline is a viable business and that the initiatives put in place by Management are bearing fruit.”

However, the group’s total revenue during the period increased by 66 percent to Sh117 billion, a five percent increase from pre-pandemic period.

The national carrier also said the airline flew 3.7 million passengers in the period, representing a 68 percent increase from the previous year.

Cargo business also grew 3.5 percent year-on-year to 69,955 tonnes.

“ICAO forecasts that air passenger demand in 2023 will rapidly recover to prepandemic levels on most routes by the first quarter and that growth of 3% on estimate on 2019 figures will be achieved by year end,” it added.

“Looking further ahead, airlines are expected to return to operating profitability in the last quarter of 2023, following three consecutive years of losses.”

“The results of the restructuring plan as well as the transformation initiatives undertaken by the management and staff of Kenya Airways are bearing fruit,” it stated.

by capital fm