Kenya’s national carrier Kenya Airways (KQ) has recorded a Sh9.89 billion net loss for the period ended June 30, 2022.
In the same period last year, the airline posted a net loss of Sh11.49 billion.
KQ attributes this year’s loss to high fuel prices, increased operating costs and weakening of the shilling against the US dollar.
KQ Board chairperson Michael Joseph said the volatility of the oil market made it difficult for the airline to maintain predictable spending on fuel.
“Jet fuel and crude oil prices rose markedly in Quarter One of 2022, putting pressure on already-strained airline finances. The elevated jet fuel price adds to the airline's operating cost,” he said.
“The group saw an increase of 53 per cent in total operating costs,” added Joseph.
Compared to 2021, the airline has posted a slight improvement in its profit and loss statement, with the loss registered in 2021 cut by around Sh1.6 billion in 2022.
“The opening of borders around the world has led to quick rebounds in some key markets," Joseph said.
In efforts to bounce back to profitability, Joseph said KQ is committed to restructuring its operations.
“Through this restructure, we aim at structurally reducing our overall costs of operation and optimising our network,” he said.