KQ net loss more than doubles in 2022

Kenya Airways, the flag carrier airline of Kenya, has reported a net loss of Ksh38.3 billion in the financial year ending in December, more than double the previous year's figure. In a recent interview with CNBC Africa, CEO Allan Kilavuka addressed the concerning numbers and outlined the airline's turnaround plan and growth prospects moving forward. Kilavuka opened the discussion by emphasizing that despite the significant increase in losses, there are positive signs of improvement within the operational aspects of the business. He highlighted a 66% increase in turnover and a 17% decrease in operating losses year on year, pointing towards a positive trend in the airline's performance. Kilavuka attributed the substantial loss to a forex hedge accounting practice, which resulted in a one-time adjustment of Ksh18 billion. He reassured investors and shareholders that the company's operational health was strong and focused on increasing revenue, controlling costs, and enhancing customer service. The CEO remained optimistic about the airline's revenue growth prospects, projecting a return to 85-90% of pre-pandemic levels by the end of the year. Kilavuka also highlighted cost-saving initiatives, including a 22% reduction in lease costs, set to positively impact the airline's financial position in 2023. He expressed confidence in Kenya Airways' turnaround timeline, targeting a return to profitability by 2024. In terms of market opportunities, Kilavuka identified promising routes across Africa, emphasizing growth potential in Southern Africa, West Africa, and Central Africa. He noted the recent visa policy changes in countries like Egypt and South Africa as factors that could boost air travel demand and drive business growth. Addressing the airline's partnership strategy, Kilavuka mentioned ongoing discussions with Delta Airlines aimed at strengthening commercial ties and enhancing operational efficiency. He highlighted the importance of collaboration within the African aviation industry to create a more robust and competitive market environment. As the interview concluded, Kilavuka underscored the significance of Kenya Airways in driving economic development and facilitating trade and tourism across the continent. Despite the current challenges, he expressed a commitment to profitability, sustainability, and supporting Africa's overall growth agenda. With a clear focus on operational improvement, revenue growth, and strategic partnerships, Kenya Airways is navigating through turbulent times with a vision for long-term success and industry leadership.