Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.
Kenya Airways has announced a drop in its losses, with the loss after tax reduced by 41% to KSh 23 billion from KSh 38 billion in its full-year 2023 Financial results.
This development marks a significant improvement for Kenya Airways, which has been grappling with financial challenges exacerbated by the COVID-19 pandemic and other operational hurdles.
The reported decrease in losses is attributed to various strategic initiatives implemented by Kenya Airways in recent times.
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These measures include cost optimization strategies, route restructuring, fleet management, and enhanced operational efficiency.
Additionally, the airline has focused on strengthening its market position and expanding its customer base through targeted marketing efforts and improved service delivery.
“These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector. 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” said Kenya Airways Chairman, Michael Joseph.
During the year under review, Kenya Airways reported an operating profit of KSh 10.5 billion, marking a 287% increase from the KSh 5.6 billion operating loss recorded in 2022.
Kenya Airways further experienced a notable surge in total revenue, marking a remarkable 53% increase to reach Ksh 178 billion, driven by heightened passenger numbers and expanded capacity deployment.
The total operating costs surged by 30%, rising from KSh 155 billion in 2022 to KSh 201 billion, notably impacted by a financing cost of KSh 33.56 billion.
This increase in financing costs was primarily attributed to a significant FX loss of KSh 24 billion incurred on the repayment of dollar-denominated loans, with additional contributions stemming from other foreign-related obligations, including lease costs and monetary assets.
In other related news, KCB Group reported a full-year net profit of KSh 37.5 billion for the fiscal year ending December 31, marking an 8.3% decline from the previous year’s figure of KSh 40.8 billion.
The profit decrease is attributed to an increase in operating costs, including a legal claim on the National Bank amounting to KSh 4.3 billion, prompting the bank to declare zero dividends.
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Source: TUKO.co.ke
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