Kenya Airways Records First Profit in Over a Decade
Kenya Airways PLC has announced its first profit since 2013, signaling a major turnaround for the national carrier. For the first half of 2024, the airline posted a profit after tax of Kshs 513 million, a dramatic recovery from the Kshs 21.7 billion loss recorded in the same period last year.
The profit, which reflects a 102% improvement, underscores the success of the airline’s strategic recovery initiative, known as Project Kifaru. This plan, which emphasizes customer focus, operational excellence, financial discipline, innovation, and sustainability, has been pivotal in steering the airline back to profitability.
Kenya Airways Chairman, Michael Joseph, lauded the achievement, stating, “This performance reaffirms the operational viability of our business and highlights the effectiveness of the collective efforts by our board, management, and staff. It marks a significant step towards sustained profitability.”
The airline saw a 10% increase in passenger numbers, reaching 2.54 million in the first half of 2024. Capacity, measured in Available Seat Kilometers (ASKs), expanded by 16% to 7.991 billion ASKs, with Revenue Passenger Kilometers (RPKs) also improving by 14%. Total revenue surged by 22% to Kshs 91 billion, driven by the rise in passenger numbers and capacity.
Kenya Airways CEO, Allan Kilavuka, expressed optimism about the airline’s future, noting, “Our financial results clearly indicate that our strategic initiatives are delivering the desired outcomes. We are well-positioned to navigate the challenges of the aviation industry and prepare for future growth.”
Despite the expansion, operating costs were kept in check, rising only in line with capacity growth, while overhead costs were reduced by 22%, demonstrating the airline’s focus on cost management.
Looking ahead, Kenya Airways is committed to completing its capital restructuring plan to reduce financial leverage and enhance liquidity, laying the foundation for long-term growth and stability.
Kilavuka emphasized the airline’s ongoing commitment to operational excellence, customer satisfaction, and innovation as it continues to build a stronger and more resilient future.
