Afrigather Kenya Airways (KQ) has lower its web loss for the yr ended December 31, 2023. The national carrier recorded the primary working revenue in practically seven years on the again of upper revenues after passenger visitors grew 35% year-on-year.
KQ, listed on the Nairobi Securities Alternate (NSE), reported a web lack of $171.9 million, down 47%—regardless that its revenues improved by 53% to $1.35 billion.
The loss-making airline flew 5 million passengers in 2023, about 36% of Ethiopian Airways’ (ET) passenger visitors within the 2022/23 monetary yr. ET is the provider’s fundamental competitor within the area.
“Within the close to time period, the main focus is on finishing the capital restructuring plan whose fundamental aims are to cut back the Group’s monetary leverage, fund progress, and improve liquidity to make sure the corporate can function at optimum ranges,” Allan Kilavuka, KQ Group CEO informed buyers on Tuesday in the course of the launch of 2023 monetary leads to Nairobi.
KQ, which has been within the crimson since 2012, promised buyers that they want to return to profitability for the primary time in additional than a decade this yr.
Accrued losses through the years have seen Kenya’s flagship provider dip into destructive fairness, making it technically bancrupt with the federal government pumping billions in bailout.
Final yr, the corporate tapped US advisory agency Seabury Consulting to assist it restructure the enterprise and develop a revival plan to wean it off state bailouts which have price Kenyan taxpayers billions.
The provider is presently within the means of hiring one other advisor to assist discover an fairness investor amid a brand new push to revive the enterprise.
“Our focus is on finishing the capital restructuring plan to cut back the Group’s monetary leverage and improve liquidity to make sure the corporate can function at optimum ranges.
The goal is to put Kenya Airways on a stronger footing and supply a secure base for long-term progress,” Group CFO Hellen Mathuka mentioned in the course of the launch of the outcomes.
