Kenya Airways Operating Costs Increased 93% in 2022
In the financial year ending December 2022, Kenya Airways recorded an increase in revenue, losses, and operating costs.
Simpleflying.com reported that Kenya Airways released its full-year financial results for the year ending December 31, 2022 where the airline highlighted an increase in revenue, losses, and operating costs.
The latest statistics released on March 27, showed that the group’s total revenue in 2022 stood at $890 million, a 66% increase from the previous year. However, the group’s operating costs increased by 93% due to the rise in operations and fuel costs.
KQ’s revenue for 2022 increased by 66% to $890 million compared to 2021. The group has projected sustainable recovery by 2024 as the revenue is only five per cent below pre-pandemic levels. A total of 3.7 million passengers were uplifted in 2022, registering a 68% increase compared to 2021.
The increase in revenue was attributed to the increase in travel demand as the world has opened up. While passengers increased by 68 per cent, over 65,000 tonnes of cargo were airlifted by KQ, which is a 3.5 per cent increase.
The deployed capacity in Available Seat Kilometers (ASKs) increased by 75 per cent, ending 2022 at 10.3 billion compared to 5.9 billion in 2021. As a result, the passenger load factors were only 3.9% below the load factors achieved before the pandemic.
Speaking at the investor briefing, Kenya Airways Chairman Michael Joseph said that global air passenger traffic gained momentum and recovered sustainability as governments lifted COVID-19 travel restrictions and passengers grasped the opportunity to resume travel, which was reflective of KQ’s performance. He added;”In 2022, KQs operations were impacted positively by pent-up travel demand, the removal of travel restrictions and KQs efforts to increase frequencies across its network resulting in a strong and sustained recovery in performance compared to a similar period in the prior year. As a result, global passenger traffic recovered from 41.7 per cent of 2019 levels in 2021 to 68.5 per cent in 2022.”
