Kenya Airways Reports Narrower Losses Amid Fleet Modernization

Kenya Airways has significantly narrowed its net losses to Ksh8.2 billion for FY2023, down from Ksh20.1 billion the previous year, as its fleet renewal and route optimization strategy begins to yield results. The national carrier phased out older Boeing 737s and added fuel-efficient Embraer E190s, cutting fuel costs by 14%. Passenger numbers grew by 21%, especially on regional routes to Lagos, Kinshasa, and Dar es Salaam. CEO Allan Kilavuka said cargo revenue also rose due to e-commerce logistics partnerships. The airline benefited from the recovery in global travel post-pandemic and a weaker shilling that boosted dollar earnings. However, high debt (Ksh89 billion) and legacy pension obligations remain challenges. The government’s proposed privatization—potentially bringing in Qatar Airways as a strategic investor—could be finalized by late 2024. Unions have expressed cautious optimism, stressing job security. Analysts note that sustained profitability hinges on completing the turnaround plan and avoiding political interference.