National carrier Kenya Airways has reduced its full year net loss from Sh. 38 billion to Sh. 22.7 billion. This represented a 40.6 per cent reduction in net loss.
In the year under review, the carrier recorded an operating profit of Sh. 10.5 billion.
“We have achieved a remarkable 287 per cent growth compared to last year. With a 53 per cent increase in total revenue and passenger numbers bouncing back by 43 per cent, we’re flying closer to pre-pandemic levels,” the carrier announced.
Total revenue increased by 53 per cent to close at Sh. 178.4 billion. This was attributable to a 43 per cent growth in passenger numbers against prior year and to only 2 per cent below the pre-pandemic levels.
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At the same time, Kenya Airways reported a 37 per cent increment in total operating costs despite a 44 per cent increase in capacity deployed.
“Direct operating costs increased 48 per cent while fleet costs were lower by 47.5 per cent due to fleet rationalization,” the airline announced.
Overheads increased by 22 per cent due 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.
“These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector,” Kenya Airways Chairman Michael Joseph said.
“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.”
At the same time, Kenya Airways Group Managing Director and chief executive officer, Allan Kilavuka, added that during the year, the company’s main focus remained on improving customer experience, operational excellence, and cash conservation.
These efforts, he said, resulted in the airline improving its On-Time Performance (OTP) to a high of 76 per cent from an average low of 58 per cent 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 said.