Kenya Airways(KQ) cut down its Net Losses to KSh 11.5 Billion in H1, 2021 compared to a Net Loss of KSh 14.3 Billion over the same period in 2020.
KQ also recorded a reduction in Total Income to KSh 27.4 Billion in H1, 2021 from KSh 30.2 Billion during the period under review.
The national carrier’s balance sheet size shrunk to KSh 153.3 Million in H1, 2021 from KSh 171.5 Million in H1, 2020. The Airline cut its operating losses from KSh 8.4 Billion at the end of H1, 2021, compared to KSh 8.4 Billion in H1, 2020.
KQ profitability improved, although still in negative territory, from a basic loss per share of KSh 2.46 to KSh 1.97 in H1, 2021.
KQ profitability still in negative territory
According to the KQ Board of Directors, the Airline’s operations were severely impacted by the COVID-19 crisis during the first half of 2021.
The Airline has been operating at 30% of the 2019 capacity as a result of depressed demand. “This is due to difficulties in controlling the virus variants, slow vaccination uptake in some of our key markets, travel restrictions and lock downs,” said Michael Joseph, KQ Board Chairman.
KQ’s key routes, including London, India and Guangzhou, have experienced various travel restrictions, severely hitting the Airline’s network deployment.
Capacity deployed measured in Available Seat Kilometres(ASKs) stood at 2,378 Million compared to 3,722 Million reported in June 2020, a decline of 36%.
During H1 2021, the Airline’s total revenue fell by 9% to KSh 27.3 Billion, a reduction attributed to the cessation of domestic scheduled operations in April and travel restrictions/lockdowns due to a surge in virus cases.
During the period, KQ operated several charter flights and ramped up cargo operations, penetrating new market sectors. ” We believe that these new markets and diversified revenue streams will be critical for the future of the airline,” said Michael Joseph.
A total of 0.8 Million passengers were uplifted during the period, a 20% decline compared to H1, 2020 and a 64% decline compared to 2019.
Although passenger revenue declined by 17% to KSh 20.2 Billion, Cargo revenues increased by 60% due to a strong focus on freight operations.
KQ saw a decline of 10% in total operating costs, with direct operating costs declining by 13%. The Airline recorded an operating loss margin from KSh 8.4 Billion to KSh 7.3 Billion.
In its outlook, KQ says its financial performance will continue to be affected by the ongoing pandemic, which has suppressed air travel demand.
” We have introduced stringent sanitary measures on board our aircraft and at every customer touch point to reduce the risk of transmission,” said Michael Joseph.
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