Kenya Airways (KQ) has recorded a net loss of Sh21.7 billion in the half-year ended June 2023, which was more than double the Sh9.9 billion it posted in same period in 2022.

The Kenyan national airline has blamed the huge loss on foreign exchange (Forex) losses due to the depreciation of the Kenya shilling against the dollar as well as its ballooning debt.

But KQ posted an operating profit of Sh998 million for H1 2023, making it the first time the airline recorded such a profit in the past six years after a Sh5 billion operating loss in 2022.

The airline also posted a 56 per cent rise in revenue to Sh75 billion, as finance costs also grew to Sh22.8 billion, marking a 360 per cent increase from Sh4.9 billion in H1 2022.

The significant revenue growth was attributed to a surge in the number of passengers using KQ to 2.3 million from 1.6 million resulting in passenger revenue growth to Sh29.9 billion.

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The struggling national carrier’s short-term liabilities reached Sh124.8 billion as its long-term liabilities stood at Sh176.8 billion.

“For the first time in six years we have made an operating profit, which is clearly a testament of the hard work we put in to turn around this airline. Operating results show the company is viable,” said KQ CEO Allan Kilavuka.

This comes a month after the Kenyan government announced that it had taken over the Kenyan airline’s Sh12.3 billion debt for the financial year ended June 2023.

“If we can deal with the legacy issues that have plagued us for many years, we are a viable business, we are an attractive business,” added Kilavuka.