Kenya Airways Posts First Profit in Over a Decade

On Monday, Kenya Airways announced its financial results for the first half of the year, revealing a profit after tax for the first time since 2013. The airline reported a profit of Kshs 513 million ($3.95 million) for the first half of the financial year ending June 30, 2024, marking a turnaround from the Kshs 21.7 billion loss reported in the previous period.

During this period, Kenya Airways carried 2.54 million passengers, representing a 10% increase compared to the previous year. This growth in passenger numbers contributed to the airline’s revenue of Kshs 91 billion ($846 million).

The airline also saw a 16% increase in capacity, measured in Available Seat Kilometers (ASKs), to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) rose by 14%. These improvements are attributed to the airline’s strategic turnaround plan.

Kenya Airways Chairman, Michael Joseph, praised the airline’s performance, stating, “The impressive results reaffirm the operational viability of our business and highlight the effectiveness of the collective efforts by our board, management, and staff. This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”

Despite the expansion, operating costs increased by 22%. The airline’s profit after tax saw a 102% improvement.

Joseph emphasized the airline’s focus on completing its capital restructuring plan to reduce financial leverage and enhance liquidity, ensuring a strong foundation for long-term growth and stability. “Kenya Airways is committed to maintaining this positive momentum, building on the success of the first half of 2024 as we continue to strive for excellence in the aviation industry,” he concluded.

Kenya Airways CEO, Allan Kilavuka, also commented on the improved financial performance, noting, “Our financial results clearly indicate that our strategic initiatives are delivering the desired outcomes. We have focused on strengthening our core operations, enhancing customer service, and exploring new growth opportunities. This performance positions us well to navigate the challenges of the aviation industry and prepare for future growth.”

Following significant transformation efforts, Kenya Airways is now a different airline, prioritizing profitable growth as a key condition for future expansion. The airline’s ongoing recovery and turnaround initiatives led to an operating profit of Ksh 10.5 billion ($80.85 million) for the year ending Dec. 31, 2023, compared to an operating loss of Ksh 5.6 billion ($43.12 million) in the prior year—a 287% improvement, as reported in March this year.

The Government of Kenya, as a major investor in Kenya Airways, has expressed its strong support for the airline’s operational and capital structure optimization process and remains closely involved throughout the transaction process, intending to continue as a major stakeholder in the long term.

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Victor Shalton

Victor Shalton's love for aviation can be traced to when he was 11-years-old. As a seasoned aviation writer, he takes pride in providing the best aviation coverage around the globe and is passionate about advancing his skills in the aviation space. In addition, he loves travelling, writing, arts and while his speaking engagements have taken him around the world, he is proud to call Nairobi home.

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