Kenya Airways has reported a net profit of Sh513 million in its half-year financials, achieving profitability for the first time in a decade. The milestone is attributed to a 22 per cent surge in revenue, fuelled by increased passenger and cargo volumes.

The airline last recorded a profit of Sh384 million in the half year to June 2013 and had been making losses since then.

The airline, which in the corresponding period last year reported a loss of Sh21.7 billion attributed the growth to 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,” said KQ Chairman, Michael Joseph said. In the period under review, revenue increased to Sh91.5 billion, up from Sh75.1 billion in the previous year. Total operating costs also increased to Sh90.2 billion from Sh74.1 billion, resulting in an operating profit of Sh1.3 billion.

Foreign currency exchange

KQ also benefited from significant foreign currency exchange gains on borrowings and leases, amounting to Sh5.4 billion, compared to a loss of Sh15.3 billion last year.  Despite higher finance costs of Sh6 billion, the airline’s overall financial health improved, leading to a profit before income tax of Sh634 million, a turnaround that highlighted KQ’s strategic focus on expanding passenger and cargo volumes, which has been instrumental in achieving this financial milestone. In the period under review, experienced a 10 per cent increase in passenger numbers, totalling 2.54 million.

The airline’s capacity, measured in Available Seat Kilometres (ASKs), increased by 16 per cent to 7.9 billion ASKs, while Revenue Passenger Kilometres (RPKs) improved by 14 per cent. 

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. A strategic investor is expected to be announced at the end of this year.

Strategic initiatives

Allan Kilavuka, the KQ Chief executive noted that the airline’s strategic initiatives are yielding positive results, strengthening core operations, enhancing customer service, and exploring new growth avenues, positioning the carrier well for future challenges and growth.

“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” he said, adding that they expect to break even this financial year.