Kenya Airways has now flown for 9 straight years without making a single profit. For the 9 years, all the net losses have averaged 10 billion shillings annually. The cumulative net loss now stands at 144.64 billion shillings, the largest for any company in Kenya.
For the financial year ended December 2021, the ailing airline sunk further into losses with a net loss of 15.8 billion shillings. This was, however, a loss reduction by 56 percent from a loss of 36.2 billion shillings the previous year. Hopes of it getting out of the woods are still a dark dream.
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Kenya Airways has a negative capital of Ksh 83 billion… Meaning, if everything they own is sold, they will still owe Ksh 83 billion. This is madness. They have also proudly made a loss of 19 billion shillings… This can make a good movie on “How to make losses & survive”.
— Juma G 🇰🇪 (@jumaf3) March 29, 2022
At the same time, Kenya Airways is operating at negative liquidity of 83 billion shillings. This means that if the airline was liquidated today, it will still owe creditors more than 83 billion shillings with little being done to arrest the situation.
During the period under review, total revenue rose 32.98 percent to 70.22 billion shillings as a result of such services as charter services which jumped 300 percent and helped compensate for income lost because of travel restrictions on some routes at the helm of Covid-19.
During the period, Kenya Airways flew 2.2 million passengers on its planes. This was a 25 percent growth over the previous year, while the cargo business grew 29 percent to 63,726 tonnes. When Covid-19 hit, most planes were converted into cargo.
“Following the worst year on record for the aviation industry [2020], the industry is seeing strong signs of recovery, particularly in US domestic travel and the more moderate recovery in international travel,” Mr. Michael Joseph.
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