Kenya Airways posts first half year profit in a decade with Sh513 million turnaround

In a dramatic turnaround that has sent shockwaves through the aviation industry, Kenya Airways has announced its triumphant return to profitability.

After a decade-long drought, the national carrier has posted a Sh513 million profit after tax for the first half of the financial year ending June 30, 2024.

This is a staggering reversal from the Sh21.7 billion loss incurred during the same period in the previous year.

The airline’s resurrection is largely credited to its strategic overhaul, 'Project Kifaru', a bold initiative that has placed an unwavering focus on customer satisfaction, operational excellence, fiscal discipline, innovation, and environmental sustainability.

“The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff,” declared Kenya Airways Chairman, Michael Joseph.

He added, “This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”

Passenger numbers have surged by 10 per cent, with a total of 2.54 million travellers choosing Kenya Airways.

Capacity, measured in Available Seat Kilometers (ASKs), has expanded by a robust 16 per cent to reach 7.991 billion ASKs, resulting in a 14 per cent increase in Revenue Passenger Kilometers (RPKs).

This surge in passenger traffic has translated into a 22 per cent boost in total revenue, bringing it to Sh91 billion.

While operating costs have risen in line with the expansion, the airline has demonstrated its commitment to efficiency by slashing overheads by a commendable 22 per cent.

The culmination of these efforts is the airline’s profit after tax, which has experienced a phenomenal 102 per cent improvement.

“Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes,” said Allan Kilavuka, CEO of Kenya Airways, with evident satisfaction.

“We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth.”

As Kenya Airways soars to new heights, the airline affirmed that it remains committed to its strategic priorities: operational excellence, customer satisfaction, and innovation.

These pillars, the airline believes, will continue to fuel sustainable growth, create value for shareholders, and deliver world-class service to its customers.

Joseph concluded by emphasizing the airline's focus on completing its capital restructuring plan, a move that will solidify its financial position and pave the way for sustained growth.

With a clear path forward, Kenya Airways is not resting on its laurels.

The airline expressed its determination to build on this momentum, reduce financial leverage, and solidify its position as a leading player in the aviation industry.

As the airline continues to build on its momentum, the future looks promising for both the company and the nation.