Kenya Airways (KQ), the national carrier of Kenya, expects earnings to fall by at least 25% in 2022 year-on-year, compared to the previous year, The Kenyan Wall Street newspaper reported, citing a public notice.
The airline attributed the decline in profits to forex losses, which resulted from the novation of guaranteed dollar loans as part of its ongoing financial restructuring program.
However, the airline’s management is optimistic about turning profitable by 2024.
Earlier this month, KQ share trading was suspended from the Nairobi bourse for 12 months to enable it to complete the operational and restructuring process.
In December 2022, the government told the International Monetary Fund (IMF) that they will undertake many takeovers of distressed loans, known technically as novation, increasing the country’s annual debt service.
The government has already announced taking over KQ loans totaling $485 million (KES 59.7 billion) as part of its rescue plan.
(Editing by Seban Scaria email@example.com )