Kenya Airways (KQ), the nation’s flagship carrier, has achieved a remarkable financial turnaround, reporting a profit after tax of KShs 5.4 billion for the financial year ending December 31, 2024. This significant improvement of KShs 28 billion from a loss of KShs 22.6 billion in the previous year underscores the effectiveness of the airline’s recovery strategy, Project Kifaru.
Operating Highlights:
- Capacity Expansion: The airline increased its capacity, measured in Available Seat Kilometers (ASKs), by 10% to 16.227 billion, up from 14.804 billion in the previous year.
- Passenger Growth: Passenger numbers grew by 4%, reaching 5.23 million, up from 5.04 million in the prior year.
- Cabin Factor: The cabin factor stood at 75.2%, indicating a healthy demand for the airline’s services.
- Revenue: Turnover increased by 6%, driven by higher passenger numbers.
- Operating Profit: The airline recorded an operating profit higher by 58%, reflecting improved operational efficiency.
- Profit After Tax: There was a 124% improvement in profit after tax, marking a significant turnaround from the previous year’s losses.
Financial Highlights:
- Revenue and Capacity: Total revenue grew by 6% to KShs 188 billion, driven by a 4% increase in passenger numbers and a 25% growth in cargo tonnage.
- Costs: Total costs were 9% lower than the prior year, mainly due to savings on overheads and a reduction in net finance costs resulting from a stable currency. Direct operating costs increased by 8%, and fleet ownership costs rose by 5% in line with the increased capacity deployed.
Strategic Initiatives and Operational Efficiency:
Kenya Airways has launched key sustainability and operational efficiency projects to cut operational costs and enhance work efficiency. These initiatives include the Pyro-Diesel Plant, Water Bottling Expansion, and the transformation of Msafiri House into a centralized operations hub. These projects are part of the airline’s sustainability and strategic recovery plan, Project Kifaru, aiming to reduce environmental footprint, improve operational efficiency, and contribute to Africa’s prosperity through responsible corporate practices.
The airline remains focused on building on the gains made in its turnaround strategy, Project Kifaru. The near-term focus is on completing the capital restructuring plan to reduce financial leverage and increase liquidity, ensuring the company can operate at normalized levels. The board and management are actively engaged in securing sufficient funding to support the stability and future sustainability of the airline. Plans are underway to invest in increasing the fleet, modernizing the cabin of existing aircraft, and growing diversified business segments.
