Kenya Airways has announced its first profitable half-year since 2013, attributing the positive outcome to increased revenue and reduced operational expenses. The airline recorded a net profit of $3.9 million (KES513 million) for the first half of 2024, which is a remarkable 102% improvement from the same period in the previous year.
This turnaround is significant, considering the airline suffered a substantial loss of $168.3 million (KES21.7 billion) in the first half of 2023. The company is now optimistic about achieving its first annual profit in more than ten years in the following year.
Kenya Airways Chairman Michael Joseph expressed confidence in the airline’s performance during an earnings call on Monday, stating, “This demonstrates our capabilities as an airline. While there’s still potential for further progress, the board is pleased with these outcomes.”
The airline’s total revenue climbed by 22% to $709.8 million (KES91.49 billion), while its operating costs were cut by 22%, amounting to $699.8 million (KES90.20 billion). Allan Kilavuka, Group Managing Director of Kenya Airways, indicated that the airline aims to reach a break-even point by the end of 2024.
“We haven’t fully achieved our goal yet, but this is a significant step that reflects our commitment to transforming Kenya Airways into a stable and sustainable carrier. It’s a milestone worth celebrating,” Kilavuka commented.
The airline, which is 48% owned by the government, faced insolvency in 2018 due to substantial dollar-denominated debts accumulated during a period of aggressive expansion.
