Kenya Airways delivered its first operating profit in six years posting a profit of Ksh 10.53 billion($80.38 million) for the 2023 fiscal year.
KQ’s revenue surged by 53% year-over-year to Ksh 178.5 billion, significantly outpacing a 37.2% increase in operating costs.
The revenue resulted in a turnaround from a loss of Ksh 5.6 billion in 2022 to an operating profit of Ksh 10.5 billion in 2023.
“Kenya Airways PLC has achieved a significant milestone! For the first time in seven (7) years, KQ has recorded an operating profit of Ksh 10.5 billion for the year ending 31 December 2023… The group’s total revenue increased to Ksh178 billion, a 53% increment mainly attributable to a mixed impact of higher passenger numbers and increased deployed capacity,” said Michael Joseph, the Chairman of Kenya Airways.
Kenya Airway’s Group Managing Director and CEO, Allan Kilavuka, said the positive performance was primarily driven by a 35% increase in passenger traffic.
However, unexpected foreign exchange losses estimated at Ksh 24 billion impacted profitability, leading to a net loss of Ksh 22.7 billion after tax, representing a 40% improvement compared to the loss of KSh 38.2 billion in FY 2022.
Kilavuka expressed optimism about the future, stating that the company is “well on our path to recovery.”
He highlighted the improvement in the FX situation and its potential to lead to a bottom-line profit this year.
