Kenya Airways achieved a significant milestone, reporting its first half-year profit after tax since 2013 attributed to its strategic turnaround plan, Project Kifaru, increased passenger numbers, and improved operational efficiency.
The airline achieved a profit after tax of Ksh 513 million ($4 million) for the first half of 2024, a remarkable 102% improvement compared to the Ksh 21.7 billion loss reported in the same period of 2023.
Total revenue grew by 22% to Ksh 91 billion, driven by a 10% increase in passenger numbers (2.54 million) and a 14% increase in Revenue Passenger Kilometers (RPKs).
Operating costs increased by 22% but were offset by a 22% reduction in overheads, reflecting the airline’s commitment to cost management.
“The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff,” said Kenya Airways Chairman, Michael Joseph.
Key Drivers
- Project Kifaru: The airline’s strategic turnaround plan emphasizing customer focus, operational excellence, financial discipline, innovation, and sustainability is credited with driving positive results.
- Passenger Growth: Increased passenger numbers and capacity expansion (16% increase in Available Seat Kilometers) contributed to revenue growth.
- Favourable Currency Exchange: A stronger Kenyan shilling compared to the US dollar reduced foreign exchange losses.
Future Outlook
Kenya Airways remains focused on completing its capital restructuring plan and is “reasonably confident” of achieving a break-even year for 2024 as a whole, according to CEO Allan Kilavuka.
“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.”
In addition, negotiations with a potential strategic equity investor are ongoing.
