Kenya Airways (KQ) has reported a significant milestone, recording its first profit after tax since 2013, marking a major turnaround in its financial performance.
The national carrier posted a profit of KSh513 million for the first half of the financial year ending June 30, 2024, a dramatic recovery from a KSh21.7 billion loss in the same period the previous year.
This positive shift is attributed to the airline’s strategic turnaround plan, dubbed Project Kifaru, which focuses on customer obsession, operational excellence, financial discipline, innovation, and sustainability.
KQ Chairperson Michael Joseph hailed the achievement, emphasizing that the efforts of the board, management, and staff have been pivotal in driving the company towards sustained profitability.
“The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff,” Joseph stated.
“This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”
KQ CEO Allan Kilavuka also expressed optimism about the airline’s future, noting that the strategic initiatives are beginning to yield tangible results.
“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.
Kenya Airways experienced a 10% increase in passenger numbers, totaling 2.54 million, alongside a 16% expansion in capacity, measured in Available Seat Kilometers (ASKs), and a 14% improvement in Revenue Passenger Kilometers (RPKs).
The airline’s total revenue surged by 22% to KSh91 billion, driven by higher passenger numbers.
Despite the expansion, operating costs rose by 22%, in line with the increased capacity.
However, overheads were reduced by 22%, reflecting the airline’s continued commitment to cost management and operational efficiency.
The result was a remarkable 102% improvement in profitability, highlighting the success of the ongoing recovery strategy.
Kilavuka reiterated KQ’s commitment to driving sustainable growth, creating value for stakeholders, and delivering world-class service to its customers, saying,
“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline.”
