Kenya Airways Achieves First Profit Since 2013, Reports Ksh513 Million Profit After Tax for First Half of 2024

By Samuel Ouma

Kenya Airways PLC has reported its first profit after tax since 2013.

The airline announced a profit of Ksh513 million ($4 million) for the first half of the financial year ending June 30, 2024, a remarkable turnaround from the Ksh21.7 billion ($168 million) loss recorded in the same period last year.

The airline attributes this success to its strategic turnaround plan, Project Kifaru, which focuses on key areas such as customer obsession, operational excellence, financial discipline, innovation, and sustainability.

The implementation of this strategy has played a crucial role in driving the airline's recovery, as highlighted by Kenya Airways Chairman Michael Joseph.

"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.

He further emphasized that this achievement reflects Kenya Airways' strength and resilience as it continues on its path to sustained profitability.

Key operating and financial highlights for the period include a 10% increase in passenger numbers, bringing the total to 2.54 million.

The airline also expanded its capacity by 16%, reaching 7.991 billion Available Seat Kilometers (ASKs), while Revenue Passenger Kilometers (RPKs) improved by 14%.

Total revenue surged by 22% to Ksh91 billion ($705 million), driven by the rise in passenger numbers. Despite this expansion, operating costs also increased by 22%, matching the capacity growth.

However, the airline achieved a 22% reduction in overheads, reflecting its ongoing commitment to cost management and operational efficiency. These efforts culminated in a 102% improvement in profitability, underscoring the success of Kenya Airways' recovery strategy.

Kenya Airways CEO Allan Kilavuka welcomed the positive financial performance, noting that the airline's strategic initiatives deliver the desired outcomes.

"Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes. We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth. This performance positions us in good stead to navigate the challenges of the aviation industry and prepare for future growth," Kilavuka said.

As the airline continues implementing its strategic priorities, Kilavuka expressed optimism about the future, highlighting Kenya Airways' commitment to sustainable growth, stakeholder value creation, and delivering world-class service.

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