Kenya Airways Achieves First Profit Since 2013, Marking a Major Financial Turnaround

Kenya Airways (KQ) has reached a significant milestone, reporting its first profit after tax since 2013, signaling a major shift in its financial fortunes.

The national carrier recorded a profit of KSh513 million for the first half of the financial year ending June 30, 2024. This marks a dramatic recovery from the staggering KSh21.7 billion loss it reported during the same period in the previous year.

This positive turnaround is largely credited to the airline’s strategic plan, known as Project Kifaru, which prioritizes customer satisfaction, operational efficiency, financial discipline, innovation, and sustainability.

KQ Chairperson Michael Joseph praised the achievement, highlighting the crucial role played by the board, management, and staff in steering the airline toward sustained profitability.

"The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff," Joseph stated. "This milestone highlights the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability."

KQ CEO Allan Kilavuka expressed optimism about the airline's future, noting that the strategic initiatives are beginning to bear fruit.

“Our financial results clearly show that our strategic initiatives deliver the desired outcomes. We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth,” Kilavuka said.

Kenya Airways saw a 10% increase in passenger numbers, reaching 2.54 million, alongside a 16% growth in capacity, measured in Available Seat Kilometers (ASKs), and a 14% improvement in Revenue Passenger Kilometers (RPKs).

The airline's total revenue surged 22% to KSh91 billion, driven by the increased passenger numbers.

Despite this growth, operating costs also rose by 22%, reflecting the expanded capacity. However, the airline managed to reduce its overhead costs by 22%, demonstrating its commitment to cost management and operational efficiency.

The result was an impressive 102% improvement in profitability, underscoring the success of KQ's ongoing recovery strategy.

Kilavuka reiterated Kenya Airways’ commitment to driving sustainable growth, creating value for its stakeholders, and delivering world-class service to its customers.

"Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline," Kilavuka added.