Kenya Airways hires 514 people in a year of record losses

Kenya Airways hired 514 people in the fiscal year ended December 31, despite reporting a record net loss due to higher operating expenses.

According to the latest annual report, KQ, as the airline is known by its international code, ended the review period with 4,230 permanent employees.

The previous year, it had 3,716 permanent employees. Most job categories saw an increase in hiring at the company.

Management and administration increased to 1,273 from 987, followed by flight operations, which increased to 1,379 from 1,172.

Meanwhile, the number of ground service workers increased to 1,038 from 1,016. The technical division lost one person, bringing the total to 540.

The airline increased hiring as part of its plans to increase revenues and eventually turn a profit.

“In 2022, Kenya Airways staff continue to deliver on its ambitious transformation journey, anchored on three thematic strategic themes –to be an employer of choice by 2024; to be Africa’s preferred airline by 2024; and to breakeven by 2024,” the company says in the report.

The increased hiring increased the company’s wage and salary spending by Sh872 million to Sh11.3 billion in the fiscal year ended December.

Total staff costs, including redundancy and other unspecified items, fell by Sh89 million to Sh12.6 billion.

KQ’s revenue increased by two-thirds to Sh116.7 billion, but costs increased faster, resulting in a record net loss of Sh38.2 billion, up from Sh15.8 billion the previous year.

The national carrier is still relying on government bailouts to survive the impact of multi-year losses, having received Sh16.27 billion in the most recent confirmed assistance.

“As part of the government commitment to support the airline’s resumption of operations following the impact of the Covid-19 pandemic, the government of Kenya advanced a shareholder loan totalling Sh16.27 billion during the year,” KQ says in the report.

“This was in addition to Sh25 billion advanced in 2020 and 2021, making the total loan amount to Sh41.27 billion. The loan was to enable the airline to recover from the impact of Covid-19 and support restructuring.”

The loan has a five-year repayment period and a three percent annual interest rate.