NAIROBI, Kenya – National carrier Kenya Airways (KQ) has ended an 11-year profit drought, reporting Sh5.4 billion in net earnings for the year ending December 31, 2024.
This milestone marks a dramatic turnaround from the Sh22.6 billion loss recorded in 2023, representing an improvement of Sh28 billion—a 124% increase in net profit.
Although KQ had posted a half-year profit of Sh513 million in 2024, this is its first full-year profit since 2013.
Kenya Airways CEO Allan Kilavuka attributed the impressive results to the effectiveness of Project Kifaru, a recovery strategy aimed at improving operational performance and delivering enhanced customer service.
“Despite the ongoing global challenges faced by the aviation industry, such as shortages of aircraft, engines, and spare parts, our turnaround strategy is yielding positive results.
We are dedicated to completing our capital restructuring plan to reduce financial leverage, enhance liquidity, and remain an attractive investment for strategic investors,” Kilavuka said.
The airline’s turnover grew by 6%, rising to Sh188.5 billion from Sh178.5 billion the previous year. This was driven by:
- Increased Passenger Numbers: Passenger traffic grew by 4% to 5.2 million, generating Sh12.2 billion in revenue.
- Historic Cargo Growth: Cargo volumes surged by 25%, reaching a record high of 70.8 million tonnes.
Despite the profitability, shareholders will not receive dividends as the airline still has a negative equity position.
Kilavuka noted that profits would be reinvested to support long-term sustainability and that the company remains focused on attracting strategic investors.
“We are committed to optimizing our network, investing in fleet expansion, modernizing cabin interiors, and diversifying business segments to ensure sustainable growth while adapting to the evolving dynamics of the aviation industry,” he added.
Kenya Airways shares returned to the Nairobi Securities Exchange (NSE) earlier this year, triggering a bullish response.
The share price nearly doubled, rising from Sh3.83 to Sh6, positioning KQ as the 14th most valuable stock on the NSE with a market capitalization of Sh29.7 billion, accounting for 1.46% of the exchange’s equity market.
The shares had been suspended from trading in July 2020 following a government plan to nationalize the airline amid mounting debts during the COVID-19 pandemic.
The nationalization plan was later shelved as the airline began to show signs of recovery.
The Kenyan government, which holds a 48.9% stake in KQ, has been instrumental in the airline’s recovery.
In 2022, the government converted KQ’s debt into equity, providing financial relief and restructuring loan terms.
Local commercial banks now own 38.1% of the airline, with KLM Royal Dutch Airlines and minority shareholders holding 7.8% and 2.8%, respectively.
Earlier this month, the National Treasury announced plans to compensate banks owning KQ shares up to Sh6.425 billion if they sell their stakes below the principal loan amount.
