Kenya Airways (KQ) says it is committed to its turnaround strategy, Project Kifaru by completing its capital restructuring plan.
Project Kifaru’s plan aims to reduce debt and improve liquidity for sustainable operations.
“We had planned to break even by 2024 but now we have revised that to break even plus make a profit. We expect to make a nominal profit this year, from increased passenger numbers and cargo capacity,” said Mr. Allan Kilavuka, Group MD and CEO at its 48th Annual General Meeting (AGM) virtually on June 14, 2024.
This is due to increased passenger numbers, cargo capacity, and operational efficiency.
The airline plans to grow revenue through network expansion, passenger charters, and strategic partnerships.
KQ achieved an operating profit of Ksh 10.5 billion for the year ended December 31, 2023. This marked the first time in over seven years the airline has reached this level of financial success.
Challenges Remain
The Kenyan national carrier is still working to retire legacy debts, which have been a major burden on its finances.
“Through the retirement of legacy debts, strengthening of financial foundations, and pursuit of operational excellence, recapitalization will position Kenya Airways to thrive in a competitive and dynamic aviation landscape,” said Kilavuka.
In addition, it aims to reduce operational costs, including fuel, loans, and maintenance, which is crucial for long-term success.
“Of course, we have to improve our balance sheet. We are looking to create a strong balance sheet to attract a strategic investor,” KQ Board Chairman Michael Joseph said during the presentation of a review of the audited financial results and business performance for the year ended December 31, 2023.
