Kenya Airways, has spent Sh2.1 billion more on leased aircraft as the shilling dropped by 20 per cent against the dollar in the first six months of the year.
The airline’s half-year financial results released on Tuesday shows it spent Sh7.04 billion on owners of its fleet, up from Sh4.96 billion same period last year, translating to an increase of 41.8 per cent.
KQ’s improved earnings are attributed to a cabin factor of 76.1 percent, an increase in passenger numbers of 43 percent, which represents 2.3 million in headcount over the period, as well as passenger charters and ramped-up scheduled operations.
KQ’s financial recovery comes on the back of the coronavirus’ lockdown measure that grinded to a halt.
Its CEO, Allan Kivaluka, agreed that the airline’s new strategy improved its income.
Likewise, the national carrier’s revenue expanded by 56 percent to Sh75 billion in the review period.
The depreciating shilling had a larger impact on the airline’s debt repayment, which grew significantly from Sh573 million in the first half of 2022 compared to Sh10.9 billion in the period under review.
In general, the airline’s costs soared to Sh22.8 billion, a 360 per cent increase from Sh4.9 billion recorded in a similar period last year.