Kenya Airways (KQ) announces a significant reduction in its net loss for the fiscal year ending December 31, 2023.
The national carrier reports its first operating profit in almost seven years, attributing the positive outcome to a notable increase in revenues driven by a 35% year-on-year growth in passenger traffic.
Financial Performance Highlights
Despite challenges, KQ records a 47% decrease in net loss, amounting to $171.9 million, alongside a remarkable 53% surge in revenues, totaling $1.35 billion.
The airline’s operations saw it transport 5 million passengers throughout 2023, marking a noteworthy achievement in its journey towards financial recovery.
Strategic Focus and Objectives
During the release of the 2023 financial results in Nairobi, KQ Group CEO Allan Kilavuka emphasizes the company’s commitment to completing its capital restructuring plan.
The plan aims to reduce financial leverage, facilitate growth initiatives, and enhance liquidity to optimize operational efficiency.
Aiming for Profitability
With a long-standing track record of losses since 2012, Kenya Airways expresses its determination to return to profitability for the first time in over a decade.
The company acknowledges the challenges posed by accumulated losses, leading to negative equity and reliance on government bailouts.
Path to Sustainability and Growth
To address financial challenges and chart a sustainable future, KQ engages US advisory firm Seabury Consulting to spearhead business restructuring efforts and develop a comprehensive revival plan.
The airline seeks to wean itself off state bailouts and attract equity investors to bolster its financial stability.
Commitment to Long-Term Success
Group CFO Hellen Mathuka underscores KQ’s commitment to completing the capital restructuring plan and enhancing financial resilience.
The primary objective is to establish a solid foundation for sustained growth, positioning Kenya Airways as a formidable player in the aviation industry.
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