Kenya Airways PLC has announced a major milestone in its financial performance, reporting a profit after tax of KES 513 million for the six months ending June 30, 2024. This achievement marks the first time the airline has been profitable since 2013, and it reflects a dramatic recovery from the KES 21.7 billion loss recorded during the same period in 2023.
The airline attributes this financial turnaround to its strategic initiative, Project Kifaru, which was designed to overhaul its operations and return the company to profitability. Project Kifaru focuses on key areas such as customer satisfaction, operational efficiency, financial discipline, innovation, and sustainability, all of which have contributed to the improved financial results.
“The impressive performance reaffirms the operational viability of our business and showcases the effectiveness of the collective efforts by our board, management, and staff,” said Michael Joseph, Chairman of Kenya Airways. He added that the airline’s success in achieving profitability after more than a decade is a testament to the resilience and strength of the company as it continues to focus on long-term growth and stability.
The financial results for the first half of 2024 highlight several key operational and financial improvements. Passenger numbers increased by 10%, with a total of 2.54 million passengers carried during the period. This growth in passenger traffic was accompanied by a 16% increase in capacity, measured in Available Seat Kilometers (ASKs), which reached 7.991 billion ASKs. Revenue Passenger Kilometers (RPKs) also improved by 14%, indicating higher utilization of the airline’s capacity.
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In addition to the increase in passenger numbers, Kenya Airways reported a 22% surge in total revenue, reaching KES 91 billion. This revenue growth was driven primarily by the higher passenger traffic and improved capacity utilization. Despite the expansion, operating costs rose by 22%, mirroring the growth in capacity. However, the airline managed to reduce overheads by 22%, reflecting its commitment to cost management and operational efficiency.
Allan Kilavuka, CEO of Kenya Airways, emphasized that the positive financial performance is a clear indication that the airline’s strategic initiatives are delivering the desired outcomes. “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,” Kilavuka said. He also noted that this performance positions the airline to navigate the challenges of the aviation industry and prepare for future growth.
Looking ahead, Kenya Airways remains focused on completing its capital restructuring plan, which aims to reduce financial leverage and enhance liquidity. This restructuring is seen as essential for laying 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,” Joseph concluded.
