Kenya Airways experienced a significant improvement in its financial performance, narrowing its net loss by 40.6% to Sh22.6 billion in the year ended December. This improvement was driven by a surge in revenues, which grew by 52.8% to Sh178.4 billion. The airline's sales growth was attributed to the rebuilding of its route network and capacity after the disruptions caused by the COVID-19 pandemic.
Despite the revenue growth, Kenya Airways' operational results were impacted by losses on foreign exchange and early lease terminations. These additional costs increased to Sh33.5 billion, wiping out the airline's operating profit of Sh10.5 billion. The company's net loss was further exacerbated by borrowing costs and foreign exchange movements.
Kenya Airways' shares remain suspended on the Nairobi Securities Exchange, where they last traded at Sh3.83 in July 2020. The airline has been steadily increasing its capacity following the resumption of global travel, resuming flights to abandoned destinations and increasing frequencies on others. It has also signed more code-share agreements with other carriers.
The airline's current liabilities exceeded its short-term assets by Sh72.6 billion, highlighting the liquidity crisis that has persisted for years. However, Kenya Airways expects to benefit from the projected full recovery of the aviation sector this year, as estimated by the International Air Transport Association (IATA).
The airline's turnaround strategy, Project Kifaru, will continue to be a focus, along with completing the capital restructuring plan to reduce financial leverage and increase liquidity. The government has indicated its continued support for Kenya Airways' optimization process and intends to remain a major shareholder in the long term.