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Kenyan Airways continued to be a loss-making enterprise in 2022, despite its effort to improve the bottom lines. Its losses doubled to US$ 290.62 million in comparison to the previous year. This has pushed the airline’s accumulated losses to a record US$1.3 billion as of now. In absolute terms, the losses grew from US$120.55 million in 2021 to US$ 290 million in 2022.
Kenyan Airways continued to be a loss-making enterprise in 2022, despite its effort to improve the bottom lines. Its losses doubled to US$ 290.62 million in comparison to the previous year. This has pushed the airline’s accumulated losses to a record US$1.3 billion as of now. In absolute terms, the losses grew from US$120.55 million in 2021 to US$ 290 million in 2022.
The airline announced the results recently at a virtual meeting with investors. The loss was mostly due to rising fuel prices. According to the data given by the airline, costs grew from US$656.29 million to US$1.18 billion, mainly driven by rising fuel prices. The operating costs also increased due to capacity addition in the airlines. The silver lining in the midst of heavy losses was the announcement of the airline that it was on course to break even this year. The forecast is that the airline may become profitable by 2024, for the first time since 2012.
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Airlines’ total revenue increased by 66 percent to US$888.73 million as passenger numbers rose by 68 percent to 3.7 million during the assessment period, mainly due to the increase in the cargo business. It has increased by 3.5 percent to 65,955 tonnes. Last year, the airline defaulted on payment. Upon that, the Kenyan government took over US$525 million in debt to keep the airline operational. Last year, the IMF flagged the huge losses of Kenyan Airlines and Kenya power utilities as major fiscal concerns.
