Kenya Airways PLC has achieved a significant milestone in its journey toward profitability, reporting its first profit after tax since 2013. For the first half of the financial year ending June 30, 2024, the airline posted a profit of KSh 513 million, a dramatic turnaround from the KSh 21.7 billion loss reported during the same period last year.
This remarkable recovery is attributed to the airline’s strategic turnaround initiative, Project Kifaru, which focuses on customer obsession, operational excellence, financial discipline, innovation, and sustainability.
“The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff,” said Kenya Airways Chairman Michael Joseph. He further highlighted that this achievement reflects the strength and resilience of the airline as it charts a course toward sustained profitability.
Key Financial and Operational Highlights:
- Passenger Growth: Kenya Airways saw a 10% increase in passenger numbers, reaching a total of 2.54 million travelers.
- Capacity Expansion: The airline expanded its capacity, measured in Available Seat Kilometers (ASKs), by 16% to 7.991 billion ASKs. Revenue Passenger Kilometers (RPKs) also improved by 14%.
- Revenue Surge: Total revenue grew by 22% to KSh 91 billion, driven by the increase in passenger numbers.
- Cost Management: Despite the capacity expansion, operating costs rose by 22%, in line with growth. However, overheads were cut by 22%, demonstrating Kenya Airways’ commitment to operational efficiency and cost management.
- Profitability: The airline’s profit after tax showed an impressive 102% improvement, underscoring the success of the ongoing recovery strategy.
Kenya Airways remains focused on completing its capital restructuring plan, which aims to reduce financial leverage and enhance liquidity, laying the groundwork for long-term growth and stability.
“Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes,” commented Kenya Airways CEO Allan Kilavuka. “We have strengthened our core operations, enhanced customer service, and explored new growth opportunities. This performance positions us well to navigate the challenges of the aviation industry and prepare for future growth.”
As the airline continues to implement its strategic priorities, Kilavuka expressed optimism that Kenya Airways’ dedication to driving sustainable growth, creating value for stakeholders, and delivering world-class service is already yielding positive results.
“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” added Kilavuka.
This landmark achievement not only marks a new chapter for Kenya Airways but also signals a promising future for the airline as it continues to soar to new heights.
