Kenya Airways PLC has announced a milestone achievement, recording a profit after tax of Kshs 513 million for the first half of the financial year ending June 30, 2024. This marks the airline’s first profit since 2013, a significant turnaround from the Kshs 21.7 billion loss reported during the same period last year.
The airline attributes its improved financial performance to its strategic turnaround plan, Project Kifaru. This initiative focuses on customer obsession, operational excellence, financial discipline, innovation, and sustainability. The results underscore the successful implementation of these strategies.
Kenya Airways Chairman, Michael Joseph, expressed satisfaction with the airline’s performance, highlighting the collective efforts of the board, management, and staff. “The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts,” Joseph stated. He added, “This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”
Operating and Financial Highlights:
Passenger Growth: The airline saw a 10pc increase in passenger numbers, reaching 2.54 million.
Capacity Expansion: Capacity, measured in Available Seat Kilometers (ASKs), grew by 16pc to 7.991 billion ASKs. Revenue Passenger Kilometers (RPKs) improved by 14pc.
Revenue Surge:Total revenue increased by 22pc to Kshs 91 billion, driven by the higher passenger count.
Cost Management: Operating costs rose by 22pc in line with capacity expansion, but overheads were reduced by 22pc, reflecting effective cost management and operational efficiency.
Profitability: The profit after tax improved by 102pc, demonstrating the success of the airline’s recovery strategy.
CEO Allan Kilavuka welcomed the positive financial results, noting that the improvements reflect the successful implementation of strategic initiatives. “Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes,” Kilavuka said.
He highlighted the focus on strengthening core operations, enhancing customer service, and exploring new growth avenues. Kilavuka also expressed optimism about the airline’s ability to navigate future challenges and sustain its growth trajectory.
The airline is also focused on completing its capital restructuring plan to reduce financial leverage and enhance liquidity, ensuring a strong foundation for future growth and stability. “Kenya Airways is committed to maintaining this positive momentum and continuing to strive for excellence in the aviation industry,” said Joseph.
As Kenya Airways continues to implement its strategic priorities, Kilavuka reaffirmed the airline’s dedication to operational excellence, customer satisfaction, and innovation. “Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” he stated.