Kenya Airways (KQ), recorded a pre-tax profit of Sh5.53 billion for the financial year ended December 31, 2024, compared to a loss of Sh22.86 billion the national airline made in 2023.

However, KQ's inaugural good performance in 2024 was only driven by gains from foreign exchange (forex) and not revenue growth from its core business.

The Kenyan airline, which had faced financial headwinds since 2013, realized forex gains of Sh10.55 billion compared to a loss of Sh15.04 billion the company recorded back in 2023.

The forex gains arose due to the strengthening of the Kenya shilling by more than 20 per cent against the US dollar in 2024, which also aided KQ to save Sh1.2 billion in its foreign currency dominated liabilities.

KQ’s total revenue grew by only 6 per cent to Sh188 billion, mainly driven by 4 per cent increase in passenger numbers and a 25 per cent growth in cargo volumes to 70,776 tonnes.

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“Our 2024 financial results reflect a year of disciplined execution and steady progress in our turnaround plan,” stated Kenya Airways Acting CFO Mary Mwenga.

Similarly, the national carrier’s operating profit increased significantly from Sh10.53 billion posted in 2023 to Sh16.62 billion in 2024 supported by higher revenues and lower costs.

““In 2024 Kenya Airways reaffirmed progress in its turnaround strategy, Project Kifaru, resulting in the highest number of passengers that the airline has ever uplifted, the highest turnover and highest profit attained in the history of the airline,” said Kenya Airways Chairman Michael Joseph.

KQ was declared insolvent in 2018 after an overambitious expansion strategy left the company in hundreds of billions of shillings in debt amid wide calls for it to be sold off.

The airline’s debt servicing woes were worsened by the global travel restrictions occasioned by the 2020 pandemic, weakened shilling in 2022-2023 and an increase in the interest rates.

However, KQ faces a serious deficit in working capital owing to its negative equity position emanating from the more than 11 years of making substantial losses running into billions.

“This is a testament that the recovery strategy is bearing fruit. These results are remarkable because they also mark the highest number of passengers that the airline has ever lifted and the highest turnover attained by the airline,” said KQ CEO Allan Kilavuka. 

 For over a decade, KQ has addicted to Kenya government multi-billion-shilling bailouts with the recent being in January when it settled a Sh19.4 billion loan owed to commercial banks.

Speaking on Tuesday, Joseph said called for upgrading of the Jomo Kenyatta International Airport (JKIA) and expansion of KQ’s fleet to enable it to further expand its profits in 2025.