Kenya Airways reports US$41.7M profit, rebounding from decade-long loss streak

KENYA – Kenya Airways has posted a pretax profit of KES 5.4 billion (US$41.7 million) last year, marking a significant recovery from the KES 22.86 billion (US$176.7 million) loss recorded the previous year and breaking the airline’s 10-year loss streak.

Kenya Airways (KQ) has reported a 124% increase in profit, reaching KES 5.4 billion (US$41.7 million), significantly enhancing the company’s financial health and positioning it for future growth and stability.

This achievement underscores the effectiveness of the recovery strategy under Project Kifaru, which has focused on enhancing operational performance through various initiatives and delivering exceptional customer service through specific actions.

Total revenue collected by KQ rose by 6% to KES 188.5 billion (US$1.46 billion), driven by a 4% increase in passenger numbers and a 25% growth in cargo tonnage.

Total costs increased by 9% to KES 171.9 billion (US$1.33 billion), aligning with capacity growth.

Operating profit surged by 58% to KES 16.6 billion (approximately US$128.3 million), reflecting effective cost management. Net finance costs decreased by 67% to KES 11.1 billion (US$85.8 million).

Profit before tax was KES 5.5 billion (US$42.5 million), compared to a loss of KES 22.8 billion (US$176.2 million) in 2023.

Cargo volume rose by 25% to 70,776 tonnes. The operating margin increased from 5.9% to 8.8%, while the net margin improved from -12.7% to 2.9%. Passenger numbers grew by 4% to 5.23 million.

The capacity offered increased by 10%, measured in Available Seat Kilometers (ASKs), with market capacity increasing to 16.227 billion ASKs, up from 14.804 billion the previous year.

The uptake of this capacity, measured in Revenue Passenger Kilometers (RPKs), improved by 5%, resulting in a cabin factor of 75.2%. Despite the increase in market capacity, yield remained consistent with the previous year.

Kenya Airways PLC Chairman Michael Joseph stated that these results not only set records for the highest number of passengers and turnover in the airline’s history but also signify strong operational viability and resilience.

He emphasized the company’s ongoing commitment to customer focus, operational excellence, financial discipline, cultural transformation, innovation, and sustainability.

Group Managing Director and CEO Allan Kilavuka mentioned that the airline is still focused on attracting a strategic investor to ensure long-term sustainability.

He noted that despite ongoing global challenges faced by the aviation industry, such as shortages of aircraft, engines, and spare parts, the turnaround strategy is yielding positive results.

Kilavuka expressed dedication to completing the capital restructuring plan to reduce financial leverage, enhance liquidity, and remain an attractive investment for strategic investors.

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