National carrier Kenya Airways (KQ) has managed to cut down its losses by Sh2.3 billion in the half-year financial results it released on Wednesday as the struggling airline managed to grow its revenues.

In the financial results for the six-month period ending June 2022 at a virtual investor briefing, KQ said it had reduced its operating loss from Sh7.3 billion in 2021 to Sh5 billion, a 31.5 per cent reduction.

Total revenues stood at Sh48.1 million, representing a 76 per cent rise compared to the same period in 2021 due to a 109 per cent passenger revenue growth and 18 per cent cargo revenue increased.

KQ says during Half 1 of 2022, its operations improved due to pent-up demand and removal of travel restrictions, putting it on a strong and sustained trading performance compared to a similar period last year.

The airline ferried 1.61 million passengers during the same period, marking an 85 per cent growth compared to last year's 870,000 passengers, which was still 33 per cent lower than the pre-pandemic period of 2019.

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The national carrier’s cargo tonnage increased by 39 per cent compared to a similar period in 2021, which demonstrated continuous outstanding growth in air freight services.

"The opening of borders worldwide has led to quick rebounds in some key markets. Lingering travel restrictions in some markets have limited the recovery. It is also important to note that these results were further affected by the high price of aviation fuel which is over 65% more than last year. If we adjusted for the fuel price spike, the operating profit for the period would have been Kshs 1.5B," said Kenya Airways Board Chairman Michael Joseph.

The International Air Transport Association has expressed confidence global airline passenger numbers will reach 83 per cent of pre-pandemic figures in 2022, bringing the aviation industry's recovery to profitability within reach despite ongoing uncertainties across the globe.

KQ noted that strong demand, lifting travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fuelling a revival in demand that will see industry revenues reach USD782 billion, a 54.5 per cent year-on-year rise representing 93.3 per cent of 2019 levels.

"The industry is experiencing recovery. Our focus is to ensure that we strengthen our operational resilience through innovation and diversification to deliver great and reliable services to our customers. We have transformed the airline during the pandemic, enabling us to emerge with renewed strength, underpinned by a product, network and service that customers value," added Allan Kilavuka, Kenya Airways Group Managing Director and CEO.