Kenya’s national airline, Kenya Airways (KQ), has recorded a Ksh21.7 billion ($161.6 million) net loss between January and June 2023.
This is more than double the total losses it recorded in a similar period in 2022. KQ, at the time, posted a net loss of Ksh9.9 billion ($82.5million).
In its financial statement, KQ attributes the losses to a weak local currency, fuel costs and debt obligations.
The airline’s revenue in the first six months of 2023 was Ksh75 billion ($558.5 million), an increase by 56% compared to a similar period in 2022.
KQ attributed the rise to an increase in the number of passengers, from 1.6 million in the first half of 2022 to 2.3 million between January and June 2023. Direct revenue from passenger operations was Ksh29.9 billion ($222.6 million).
Higher operating costs
The higher revenue was, however, negatively affected by increased operating costs that stood at Ksh96.8 billion ($720.8 million).
Its loan obligation between January and June 2023 was Ksh22 billion ($163.8 million), while it spent Ksh7.4 billion on fuel during that period ($55.1 million).
The airline’s CEO Allan Kilavuka said on Tuesday that there were indicators that KQ could soon return to profitability.
