NAIROBI, Kenya- In a significant turn of events, Kenya Airways (KQ) has posted a net profit of KSh 513 million for the first half of 2024, marking the airline’s first profitable period since 2013.
This impressive comeback follows a series of financial struggles, with the airline reporting a staggering KSh 21.7 billion loss over the same period last year.
The dramatic shift in fortunes is largely attributed to the company’s strategic turnaround plan, Project Kifaru, which has focused on operational excellence, financial discipline, and innovation.
Kenya Airways’ return to profitability is no small feat, especially after years of losses.
The airline’s Chairman, Michael Joseph, expressed confidence in the company’s renewed direction, stating, “The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff.”
Project Kifaru, launched as a comprehensive turnaround strategy, has been instrumental in streamlining operations and implementing cost-saving measures, which have been key to the airline’s financial recovery.
One of the standout factors behind KQ’s resurgence has been a substantial increase in revenue.
For the year ending June 30, 2024, Kenya Airways reported a 22pc rise in revenue, reaching KSh 91 billion, up from KSh 75.1 billion in the previous year.
This growth was fueled by a 10pc increase in passenger numbers, with 2.54 million travelers choosing KQ during this period.
The airline’s capacity, measured in Available Seat Kilometers (ASKs), also saw a 16pc boost, reflecting the higher demand. Revenue Passenger Kilometers (RPKs) improved by 14pc, further underscoring the success of KQ’s customer-focused initiatives.
Kenya Airways CEO, Allan Kilavuka, highlighted the importance of these achievements.
“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, he said.
“This performance positions us in good stead to navigate the challenges of the aviation industry and prepare for future growth,” he added.
Cost reduction has been another critical component of KQ’s turnaround strategy. The airline reported a 22pc reduction in operating costs, which fell to KSh 74.1 billion from KSh 90.2 billion in the same period last year.
Despite these gains, the airline’s total assets slightly declined to KSh 174.3 billion, compared to KSh 176.6 billion reported last year, indicating that there is still work to be done in stabilizing the company’s financial position.
As the company continues to implement its strategic initiatives, the focus will be on sustaining this momentum and addressing the challenges that lie ahead in the highly competitive aviation industry.
