KQ narrows its half year loss to KSh 9.88 billion as total revenues rise

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  • Kenya Airways (KQ) narrowed its half-year loss to KSh 9.88 billion, less than the KSh 11.48 billion loss it reported in the same period in 2021.
  • Kenya Airways (KQ) has revealed that its total revenue rose to KSh 48,104 million in the six months ending June 2022, recording a 76 per cent increase compared to the same period last year
  • KQ said the increase is mainly attributed to significant growth in passenger revenue, which grew by 109 per cent, and cargo revenue which increased by 18 per cent

Kenya Airways (KQ) narrowed its half-year loss to KSh 9.88 billion, less than the KSh 11.48 billion loss it reported in the same period in 2021.

During the review period, the airline revealed that its total revenue rose to KSh 48,104 million in the six months ending June 2022, recording a 76 per cent increase compared to the same period last year.

According to Kenya’s national carrier, the increase is mainly attributed to significant growth in passenger revenue, which grew by 109 per cent, and cargo revenue which increased by 18 per cent.

During the period, operations were positively impacted by pent-up demand and the removal of travel restrictions, resulting in a strong and sustained recovery in trading performance compared to a similar period in the prior year.

KQ uplifted a total of 1.61 million passengers during the period, an 85% improvement compared to the prior year’s 0.87 million passengers. This, however, remains 33% lower than the pre-pandemic period of 2019.

Cargo tonnage increased by 39% compared to the same period in 2021, demonstrating continuous outstanding growth in air freight services.

Kenya Airways, South African Airways sign codeshare deal ahead of formation of pan-african airline

Kenya Airways Board Chairman Michael Joseph said that the opening of borders worldwide has led to quick rebounds in some key markets.

“Lingering travel restrictions in some markets have limited the recovery. It is also important to note that these results were further affected by the high price of aviation fuel, which is over 65 per cent more than last year. If we adjusted for the fuel price spike, the operating profit for the period would have been KSh 1.5 billion,” he said.

The International Air Transport Association is confident global airline passenger numbers will reach 83 per cent of pre-pandemic figures in 2022, and the aviation industry’s recovery to profitability will be within sight despite ongoing uncertainties.

Strong demand, lifting travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fuelling a resurgence in demand that will see industry revenues reach USD782 billion, an increase of 54.5 per cent year-on-year and representing 93.3 per cent of 2019 levels.

Kenya Airways Group Managing Director and CEO Allan Kilavuka said the industry is experiencing recovery, adding that their focus is to ensure that they strengthen their operational resilience through innovation and diversification to deliver great and reliable services to their customers.

“We have transformed the airline during the pandemic, enabling us to emerge with renewed strength, underpinned by a product, network and service that customers value.”

KQ in Code sharing Deal with Italian Airline to Expand Market Access

In a related story, Kenya Airways and South African Airways (SAA) recently signed a codeshare agreement that opens more destinations for seamless travel opportunities.

According to the partners, the deal comes when demand for air travel is rebounding following negative shocks caused by the COVID-19 pandemic.

The partners noted that the code-sharing agreement would see each airline sell, under its own code, flights operated by each other; South African Airways or Kenya Airways.

SAA’s customers would continue to earn Voyager Miles on these new codeshare flights. The deal will also let travellers combine flight segments and baggage on a single ticket.

Passengers from South Africa will have more options to travel to African destinations, including Nairobi, Dar es Salaam, Entebbe, Mombasa, and Kisumu. KQ passengers will also have more choices for travelling into Southern Africa, including Cape Town, Durban, and Harare.

The growth of the partnership will see the addition of Zanzibar, Kilimanjaro, Juba, Douala, Lusaka Ghana and Nigeria subject to government approval as the airlines seek to offer more options for travellers within Africa.

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

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