Kenya Airways (KQ) has reported a profit after tax for the first time since 2013, in a significant milestone in its journey towards profitability.
The national carrier posted a profit after tax of KSh513 million for the first half of financial year ending June 30, 2024. In a similar previous period, KQ posted a whopping KSh21.7 billion loss.
KQ Chairperson Michael Joseph attributes this growth to the airline’s strategic turnaround plan dubbed Project Kifaru. Project Kifaru 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,” says Joseph. “This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”
On his part, KQ Chief Executive Officer (CEO) Allan Kilavuka welcomed the positive performance, observing that the strategic initiatives in place are starting to pat off.
“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.”
Kilavuka remained optimistic that KQ’s commitment and dedication to driving sustainable growth, creating value for stakeholders, and delivering world-class service to its customers is already yielding desired results.
“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” said Kilavuka.
KQ: Operating and Financial Highlights
- Passenger Growth: Kenya Airways experienced a 10% increase in passenger numbers, totaling 2.54 million.
- Capacity Expansion: The airline’s capacity, measured in Available Seat Kilometers (ASKs), increased by 16% to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14%.
- Revenue Surge: The airline’s total revenue grew by 22% to Kshs 91 billion, driven by higher passenger numbers.
- Cost Management: Despite the expansion, operating costs rose by 22%, aligning with the growth in capacity. However, overheads were reduced by 22%, reflecting Kenya Airways’ continued commitment to cost management and operational efficiency.
- Profitability: The airline’s profit after tax saw a remarkable 102% improvement, highlighting the success of the ongoing recovery strategy.
