Kenya’s national carrier Kenya Airways has made a remarkable turnaround, reporting an operating profit of KES 10.5 billion for the year ending December 2023. This is a stark contrast to the KES 5.6 billion operating loss it posted the previous year, representing a 287% increase in profitability.
The impressive results are a clear sign that the airline’s recovery and restructuring initiatives, known as Project Kifaru, are paying dividends after being hit hard by the Covid-19 pandemic. Total revenue soared 53% to KES 178 billion, buoyed by a 43% jump in passenger numbers that nearly reached pre-pandemic levels.
“These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector,” said Kenya Airways Chairman Michael Joseph. “They confirm the operational viability of the airline business and demonstrate that management’s efforts to restore profitability are yielding positive results.”
Despite facing KES 19 billion in foreign exchange losses, the airline made major strides in its turnaround strategy. The loss after tax narrowed 41% to KES 23 billion from KES 38 billion the prior year.
“During the year, the company’s main focus remained on improving customer experience, operational excellence, and cash conservation,” said Group Managing Director and CEO Allan Kilavuka. “These efforts resulted in the airline improving its On-Time Performance to a high of 76%, ranking it as Africa’s second most efficient airline.”
Kilavuka highlighted initiatives like the new Asante loyalty program, website revamp, passenger charters, and airline partnerships that boosted revenues. However, he stressed the need to complete the capital restructuring plan to reduce leverage and increase liquidity.
“Our primary focus going ahead is dedicating ourselves to innovation, nurturing partnerships, and cultivating excellence to ensure Kenya Airways soars to new heights,” Kilavuka stated. “We will continue to engage government on recapitalizing the business to place it on stronger footing.”
The Kenyan government, a major investor, has indicated its continued strong support and intent to remain a long-term stakeholder as the airline pursues operational and financial optimization. With the global aviation industry projected to fully recover next year, Kenya Airways appears poised for further resurgence after turning the corner on its pandemic troubles.
