Kenya Airways: Collaboration and hedging key to future success, says CEO

By Herald Aloo
Posted on Thursday, 1 September 2022 12:36

Kenya Airways CEO Allan Kilavuka speaks during an interview with Reuters in Nairobi
Kenya Airways CEO Allan Kilavuka in Nairobi, Kenya February 11, 2022. REUTERS/Monicah Mwangi

The last time Kenya Airways (KQ) made a profit was back in 2012, with net earnings of KSh1.66bn ($13.8m). In a bid to return to its more profitable days, KQ has three main strategies to uplift Kenya’s national carrier into a profitable path after ten years of successive losses, which were worsened by pandemic-induced travel restrictions and fuel price hikes.

Fuel hedging is where airlines agree to purchase oil in the future at a predetermined earlier price, thereby mitigating risks in the event of volatility. This means that hedging costs are mainly for future benefits depending on how soon the oil market becomes volatile.