For the first half of the financial year ending June 30, 2024, the airline achieved a profit after tax of Ksh513 million, from the Ksh21.7 billion loss reported in the similar previous period.
National airline, Kenya Airways on Monday, August 19 announced a significant milestone in its journey towards profitability, marking the first time the airline has reported a profit after tax since 2013.
For the first half of the financial year ending June 30, 2024, the airline achieved a profit after tax of Ksh513 million, from the Ksh21.7 billion loss reported in the similar previous period.
The airline attributed the growth to its strategic turnaround plan, Project Kifaru, which emphasises customer obsession, operational excellence, financial discipline, innovation, and sustainability.
Project Kifaru is Kenya Airways’ post-pandemic strategic recovery plan and is viewed as the antidote to KQ’s problems past and present and executable in two phases.
Former Transport CS Kipchumba Murkomen with Kenya Airways CEO, Allan Kilavuka during a meeting at Kenya Airways Headquarters on March 7, 2023. /KIPCHUMBA MURKOMEN
The first phase of Project Kifaru concentrated on the stabilization of the business, particularly after the COVID-19 turbulence. Stabilization is in three principal areas: operational efficiency, customer excellence and people development.
Phase Two will focus on sustainability and overall company growth, with the airline revealing that this will be achieved through the injection of capital following the process of identifying suitable investors to inject funding into KQ.
The airline’s stability is anchored on strengthening the balance sheet and ensuring that the cash flows and revenues are stable, something KQ hopes will be achieved in three years.
“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 during a virtual presentation of KQ’s half-year results.
He added: “This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”
Operating and Financial Highlights
- Passenger Growth: Kenya Airways experienced a 10 percent increase in passenger numbers, totalling 2.54 million.
- Capacity Expansion: The airline’s capacity, measured in Available Seat Kilometers (ASKs), increased by 16 percent to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14 percent.
- Revenue Surge: The airline’s total revenue grew by 22 percent to Kshs 91 billion, driven by higher passenger numbers.
- Cost Management: Despite the expansion, operating costs rose by 22 percent, aligning with the growth in capacity. However, overheads were reduced by 22 percent, reflecting Kenya Airways’ continued commitment to cost management and operational efficiency.
- Profitability: The airline’s profit after tax saw a remarkable 102 percent improvement, highlighting the success of the ongoing recovery strategy.
Joseph said the airline remains focused on completing its capital restructuring plan to reduce financial leverage and enhance liquidity, thus ensuring 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,” he concluded.
Commenting on the improved financial performance, Allan Kilavuka, CEO of Kenya Airways, welcomed the positive performance and observed, “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.”
As Kenya Airways continues to implement its strategic priorities, Kilavuka remained optimistic that the airline’s commitment and dedication to driving sustainable growth, creating value for stakeholders, and delivering world-class service to its customers is already yielding the desired results.
“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” he expressed.
A Kenya Airways Boeing 787 Dreamliner in flight. /BUSINESS TRAVELLER