Kenya Airways Sets Sights On Business Recovery By 2024

Kenya Airways PLC (KQ) held its 47th Annual General Meeting (AGM) virtually this morning. The AGM which was attended by shareholders was led by the Board Chairman, Michael Joseph, who presented a review of the audited financial results and business performance for the year ended 31st December 2022.

During the meeting, the shareholders voted on the resolutions submitted in accordance with provisions of Company’s Articles of Association, The Companies Act, 2015, The Capital Markets Act and its Regulations, including approval and adoption of; the audited Financial Statements, the Balance Sheet for the year ended 31st December 2022, the Directors' and Auditors' Reports and the Directors' Remuneration for the year ended 31st December 2022 as contained in the Annual Report and Financial Statements.

The shareholders also voted on resolutions recommending the election of the following Directors: Dr. Haron Sirima (Representative of the Cabinet Secretary, National Treasury), Mr. Mohamed Daghar (Principal Secretary, State Department for Transport), Mr. Christopher James Buckley and Mr. David Kabeberi.

According to the KQ Chairman Michael Joseph, while the lingering effects of the pandemic could still be felt, global air passenger traffic gained momentum and the aviation industry projected a strong recovery, which was reflective of the airline’s performance. “Our turnaround progress in 2022 remained on course. Our restructuring and transformation efforts led to a 66% revenue increase to stand at KES 117 billion. The growth in revenue was driven by a significant increase in passenger numbers which grew by 68% to 3.7million passengers, and over 65,000 tonnes, a 3.5% increase in cargo tonnage,” said Michael Joseph.

Allan Kilavuka, the KQ Group MD and CEO, is bullish about the airline’s turnaround strategy stating that the de-risking strategy had played a key role in the improved performance despite the 160% year on year increase in fuel costs, the dollar deterioration and its effect on direct operating costs.

“Kenya Airways remained resilient by taking advantage of the upsurge in travel demand through frequency increment and improved service offering. Despite some headwinds with fuel cost increasing year on year by 160%, and the dollar deterioration that impacted our direct operating costs, We are confident that the restructuring initiatives introduced in 2022, the airline is poised for success and will attain its aspiration to turn around by 2024. We are committed to building a robust, sustainable and successful business and we will achieve this with the support we are getting from our customers, employees, our principal shareholder the Government of Kenya and other stakeholders. “said Mr. Kilavuka.

During the AGM, the Chairman also announced the retirement of Caroline Armstrong having attained the maximum tenure under the Board Charter “On behalf of the Board, I wish to sincerely thank Ms. Caroline Armstrong, who exits the Board after a 9-year stint served with utmost commitment and diligence. She was the Chair of the Human Resources Committee and an active member of the Board with invaluable contributions throughout her tenure.”

In the Annual Report presented to the shareholders this year, KQ included its inaugural Sustainability report which highlights the company's sustainability commitments and performance for 2022. In the report Kenya Airways affirms its commitment to be a sustainable business that focuses on three(3) pillars i.e. economic, environmental and social pillars. The annual report and abridged ESG report can be accessed here.

The voting results of the Annual General Meeting will be made available on www.kenya-airways.com