NAIROBI, Kenya, Jan 28 – Kenya Airways on Saturday issued its full year profit warning ending December 2022, attributed to forex losses.
The national carrier informed investors that its earnings will be lower by a minimum 25 percent compared to a similar period in 2021.
“The Board wishes to bring the attention of the public that the earnings for the current financial year are expected to be lower by atleast 25% compared to the earnings reported for the same period in 2021,” KQ Chairman Michael Joseph said in a statement.
“The forex losses were occasioned by the novation of the guaranteed USD loans as part of the ongoing financial restructuring programme,” Joseph added.
“This means that the exchange rate difference, reported below the operating result and previously accumulated in the balance sheet reserves under hedge accounting treatment, will be released to the statement of profit or loss since the hedge instrument no longer exists. This is one-off expected losses.”
In 12-months to December 2021, the National carrier narrowed its net loss by 56.58 percent to Sh15.8 billion compared to a net loss of Sh36.2 billion when travel restrictions were on.
In the period, total revenue jumped to Sh70.22 billion that was lifted by alternative sources such as air charter services.
In 2022, KQ trimmed its half-year loss to Sh9.9billion from Sh11.5billion posted in the same period last year, attributed to increased revenues.
Likewise, the Group’s total revenue grew by 76 percent to Sh48.1 billion from Sh27.4 billion in the review period.
Income growth was boosted by a rise in passenger revenue by 109 percent as well as cargo 18 percent.
“The Board and Management is happy that the results of the restructuring plan are bearing fruit and continue to be focused and committed towards undertaking several key strategic initiatives to help the company become profitable in 2024,” concluded Joseph.
