Nairobi, 29 August2023– National carrier Kenya Airways PLC (KQ) has reaffirmed its recovery progress after recording a 120% improvement in operating profit from a loss of Kshs 5 billion reported in 2022 to Kshs 998 million in 2023. In the 2023 Half Year results reported, the Group’s revenue grew to Kshs 75 billion, recording a 56% increase compared to the same period last year. The operating improvement was underpinned by a growth in the cabin factor to 76.1%, with an increase in passenger numbers of 43% to 2.3 million.
During this period, the company mainly focused on improving the customer experience, operational excellence, and cash conservation. The airline also exploited opportunities to raise much-needed revenue through passenger charters and ramped up scheduled operations. Other initiatives undertaken by the management include partnerships with other airlines, lease rentals renegotiations and other cost-reduction measures.
The airline’s improved performance was negated by a Ksh 17 billion impact on foreign exchange losses on monetary items, loans and leases, giving rise to a loss before tax of Kshs 22 billion. According to Allan Kilavuka, the legacy debt and the devaluation of the Kenya shillings against major currencies are two concerns that continue to hold back the airline.
On the other hand, Africa’s hreatest airline,Ethiopian Airlines, earnings jumped 20% to $6.1 bln in the 2022/2023 fiscal year, despite the impact of Russian-Ukraine war and the increase in fuel prices, the country’s state news agency reported on Thursday.
The airline transported 13.7 million passengers and 723,000 tons of cargo in the fiscal year, which ends on July 7, the company’s chief executive officer Mesfin Tasew said, according to the Ethiopian News Agency.
The state-owned carrier increased its fleet by 11 passenger planes, bringing the total to 140, and converted two into cargo planes, bringing the total number of cargo planes to 15, Mesfin said.
Ethiopian Airlines introduced seven new international destinations, including Copenhagen, Atlanta, and Karachi during the budget year.
Earlier this month Mesfin said the company was evaluating possible Airbus (AIR.PA) and Boeing (BA.N) wide-body plane orders and was expecting to make a decision by the end of the year.
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