Kenya Airways cut its losses by half to Ksh15.88bn

Kenya Airways, the flag carrier airline of Kenya, has announced a notable improvement in its financial performance for the year ending December 2021. The airline reported a loss before tax of 15.9 billion Kenyan shillings, a significant reduction from the 36.2 billion Kenyan shillings reported in 2020. Allan Kilavuka, the Chief Executive Officer of Kenya Airways, credited the improved results to cost-saving measures implemented throughout 2021. In an interview with CNBC Africa, Kilavuka expressed optimism about the airline's future prospects, despite ongoing challenges in the aviation industry. He highlighted the impact of global events such as the war in Ukraine, rising oil prices, and commodity costs on the airline's recovery process. However, Kilavuka remained confident that the gradual easing of travel restrictions across different countries would contribute to a better year ahead for Kenya Airways. The CEO emphasized the importance of operational efficiency and cost control in driving the airline's turnaround project. Kilavuka noted that the company had managed to increase its top line by 13% while reducing costs by 3.3%, showcasing a balanced approach to financial management. He praised the efforts of the management and employees in promoting customer confidence and enhancing the overall service quality offered by Kenya Airways. Despite the challenges posed by the COVID-19 pandemic and global economic uncertainties, Kilavuka expressed belief in the airline's ability to navigate through the tough times and position itself for future growth. The CEO acknowledged the ongoing restructuring efforts, including a government loan aimed at supporting the airline's financial stability and operational efficiency. Kilavuka clarified that the loan was intended to facilitate permanent cost reductions within the company and provide support for daily operations amid market uncertainties. Additionally, he highlighted Kenya Airways' engagement in discussions to form a Pan-African airline group, partnering with South African Airways to enhance market coverage and operational synergies. The collaborative approach to airline consolidation was seen as a strategic move to address the fragmented nature of the African aviation market and promote sustainable growth in the industry. Kilavuka addressed concerns about the airline's debt stock, indicating plans to restructure the debt and strengthen the balance sheet through equity improvements and reduced leverage. He emphasized the need for support and unity within the African aviation sector, advocating for a collective effort to enhance market competitiveness and deliver value to customers. As Kenya Airways continues its journey towards financial recovery and operational resilience, the airline remains committed to driving innovation, efficiency, and service excellence in the ever-evolving aviation landscape.