Written By John Mutiso 📝
Kenya Airways on Tuesday reported a narrowing of its consolidated net loss to KSh15.87 billion for the year ended December 31, 2021.
This is a 56.68 percent reduction over the KSh36.57 billion loss in 2020.
According to a financial statement released on Tuesday 29, March, the airline’s total revenue jumped from 32.98 percent to Sh70.22 billion, while operating costs fell from 3.62 percent to Sh77.02 billion.
The airline has blamed the onslaught of the Omicron virus that led to the grounding of planes and the shut down of some routes like the Dubai and Guangzhou routes.
“Kenya Airways took advantage of the lockdown period to restructure and transform our operations and products. We have seen some good recovery on our domestic, regional, and selected international routes,” KQ chairman Michael Joseph said in an emailed statement.
“Following the worst year on record for the aviation industry [2020], the industry is seeing strong signs of recovery, particularly in US domestic travel and the more moderate recovery in international travel,” Mr. Joseph added.
In the year under review, the company transported 2.2 million passengers, a 25% increase over the previous year.
This is, however, a 57 percent decrease from the year before the pandemic hit Kenya in 2019.
On the other hand, cargo business increased by 29%, delivering over 63,000 tonnes and assisting KQ in staying afloat.
Operating costs were down 3.6 percent, according to the firm with direct operating costs increasing by 32.9% which is believed to be mainly driven by increased operations coupled with an increase in global fuel prices throughout the year.
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