Kenya Airways , Kenya’s national carrier has recorded a loss of KSH 38.2 Billion in the financial year ended December 31st, 2022. The loss, which is more than twice as great as the loss regarded in the financial year 2021, which reported a loss of Sh15.87 billion, has been recorded as the second-largest loss.

Although the airline’s revenue increased by 66 percent over the previous year to KSH 117 billion, operating costs accelerated by 59% to KSH 122 billion, with direct operating costs rising by 94 percent as a result of increased operations and significant annual increases in the price of fuel globally.

KQ benefited from the surge that was primarily caused by an increase in fuel prices, which accounted for KSH 11.6 billion on increased prices and more consumption due to an increase in flight operations to take up 53% of the direct operating costs. Fuel prices increased by 160 percent.

According to the airline’s management, the losses are attributable to the company’s financial obligation as a result of an increase in financing costs following the government’s takeover of the servicing of one of their Dollar-denominated loans.

KQ CEO Allan Kilavuka attributed the enormous loss to a 160 percent increase in fuel costs. He claims that the airline has reported an operating profit despite the impact of problems such as the depreciation of the gje shilling against foreign currencies. According to KQ group CFO Hellen Mathuke, the shilling’s depreciation and the unusual surge in fuel costs raised operating costs, significantly impacting overall financial results.

The airline, on the other hand, claims to be in the final phases of fleet reorganization and hopes to turn around its losses this year and be profitable by the beginning of 2024.