Kenya Airways Records Net Profit For First Time In 10 Years

• Kenya Airways reported a profit after tax of KSh 513 million for the half-year ending June 2024, a major turnaround from a KSh 23.7 billion loss during the same period in 2023
• This marks the airline's first profitable half-year results in a decade, with the last recorded profit being KSh 384 million in 2014
• CEO Allan Kilavuka attributed the profitability to growth in the cargo sector, stabilisation of the Kenya shilling, and increased overall traffic

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

Kenya Airways has announced the financial results for the half-year that ended in June 2024.

Notably, the company recorded a profit after tax of KSh 513 million, a remarkable improvement from the loss of KSh 23.7 billion reported in the same period in 2023.

This profit represents the airline's first profitable half-year results in a decade, with the last such achievement being a KSh 384 million profit recorded in 2014.

Kenya Airways attributed the profitability to growth in the cargo sector, stabilisation of the Kenya shilling as well as growth in overall traffic spurred by its strategic turnaround plan, Project Kifaru, which emphasises customer obsession, operational excellence, financial discipline, innovation, and 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... This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability," said Kenya Airways chairman, Michael Joseph.

Kenya Airways CEO Allan Kilavuka acknowledged that the airline has been in a difficult situation in the last two years and has been able to address these challenges to record net profits.

"I'm also very glad that what we have communicated and promised to the market we've been able to fulfil... So we're very glad, and also given the fact that it is the first time that we've been able to record these results for the last 10 years, it is something that we really truly want to celebrate, and we'd like to urge you all to also celebrate with us," Kilavuka said.

Kenya Airways' financial performance

According to the airline's financial report, total income surged by 22% year-on-year to KSh 91.49 billion, while total operating costs decreased by 22% to KSh 90.20 billion.

The improved cost management contributed to an operating profit of KSh 1.3 billion, representing a 30% increase.

The airline's operating margin grew to 1.4%, up from the previous year's 1.3%. Net profit for the period stood at KSh 513 million, with a net margin of 0.6%, a significant reversal from the negative 28.9% net margin recorded in June 2023.

The airline’s profit after tax saw a remarkable 102% improvement, and 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,” Joseph said.

Kilavuka also shared similar sentiments, saying,

"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.”

Kenya Airways achievements for 2024

Earlier, TUKO.co.ke reported that Kenya Airways ranked the second most efficient airline in Africa in the latest On-Time Performance Review report, having attained an impressive 71.86% on-time arrival rate out of 41,905 completed flights in 2023.

The airline also emerged as the only African airline selected to lead the IATA's SAF Registry, emphasising its role in the continent's aviation sector.

KQ was also vetted among seven African airlines recognised in the top 100 global airlines, and it has been nominated for four categories in the World Travel Awards.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke