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Kenya Airways reports first-half loss before tax after falling passenger numbers

Kenya Airways reported a loss before tax in the first six months of the year, compared to a profit for the same period last year, due to a decline in revenue and passengers, with some planes being out of service for maintenance.

Kenya Airways, one of Africa's top three airlines, posted a loss in the first six months of the year of 12,17 billion shillings (94.34 millions dollars), compared to a profit of 634 million in the same time period last year. Pretax profit was the airline's first in more than a decade.

The operating loss for the first half was 6.23 billions shillings. This is down from the 1.3 billions shillings profit of the first half in 2024. Revenues fell from 91.5 to 74.5 billions shillings.

Allan Kilavuka is the chief executive officer of the company. He told investors at an investor briefing in July that one aircraft had returned to service after being grounded for maintenance.

He stated that the goal was to have an entire fleet ready by next year.

Kenya Airways declared insolvency after an expansion campaign left it with debts of hundreds of millions dollars.

It was more difficult to service the debt due to the near-shutdown of international travel caused by the COVID-19 pandemic. This was combined with the weakening shilling in 2022-2023, and the higher interest rates.

The airline has been reliant on the state for financial support. In January, the government paid off a $150 million loan that it had received from commercial banks in the area.

The company had a profit for the full year of 2024 of 5.53 billions shillings compared to a loss for the previous year of 22.86 milliards shillings.

The performance of 2024 was largely driven by foreign exchange gains of 10,55 billion shillings versus a loss in 2023 of 15,04 billion shillings as the local currency gained more than 20% in comparison to the dollar.

(source: Reuters)