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Kenya Airways (KQ) PLC has reported a 124% increase in its net profit for the financial year ending December 31, 2024, reaching Ksh 5.4 billion after tax.
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This marks a dramatic recovery from a loss of Ksh 22.6 billion the previous year, resulting in a Ksh 28 billion improvement and a 124% rise in net profit.
This is the first time in over a decade that Kenya Airways has posted a profit.
The airline attributes this achievement to significant improvements in its financial position, preparing it for continued growth and stability. “This success reflects the impact of our recovery strategy under Project Kifaru, which focused on improving operational performance through various initiatives and providing exceptional customer service,” KQ stated. “This comprehensive strategy has been crucial in our turnaround.”
Kenya Airways’ total revenue rose by 6% to Ksh 188.5 billion, driven by a 4% increase in passenger numbers and a 25% growth in cargo tonnage. Total costs, however, grew by 9%, in line with the expansion in capacity.
Operating profit surged 58% to Ksh 16.6 billion, demonstrating effective cost management, while operating expenses rose by 2% to Ksh 171.9 billion. Net finance costs were reduced by 67% to Ksh 11.1 billion.
The airline’s profit before tax stood at Ksh 5.5 billion, compared to a loss of Ksh 22.8 billion in 2023. Cargo volume also increased by 25% to 70,776 tonnes. The operating margin improved from 5.9% to 8.8%, and the net margin turned positive from -12.7% to 2.9%. Passenger numbers increased by 4% to 5.23 million.
Financial Highlights:
The airline’s capacity grew by 10%, measured in Available Seat Kilometers (ASKs), and passenger numbers increased by 4%, reaching 5.23 million. Despite the higher market capacity, the yield remained consistent with the previous year.
The market capacity rose by 10% to 16.227 billion ASKs, up from 14.804 billion the previous year. The uptake of this capacity, measured in Revenue Passenger Kilometers (RPKs), improved by 5%, resulting in a cabin factor of 75.2%.
Kenya Airways PLC Chairman Michael Joseph noted that the historic financial results reflect not only a record number of passengers and revenue but also highlight the airline’s operational strength and resilience. “This exceptional performance demonstrates our commitment to customer satisfaction, operational excellence, financial discipline, and sustainability,” he said.
Group Managing Director and CEO Allan Kilavuka emphasized the airline’s continued focus on securing a strategic investor to ensure long-term sustainability. Despite global challenges like aircraft shortages and parts availability, Kilavuka affirmed that the turnaround strategy is delivering positive results. “We remain committed to completing our capital restructuring plan to reduce financial leverage, improve liquidity, and attract strategic investors.”
For the first half of the financial year, ending June 30, 2024, Kenya Airways reported a profit after tax of Ksh 513 million, a significant turnaround from the Ksh 21.7 billion loss in the same period the previous year. This growth is attributed to the airline’s strategic turnaround plan, Project Kifaru.
In 2023, Kenya Airways reduced its tax loss by 41%, bringing it down to Ksh 23 billion from Ksh 38 billion, marking the 10th consecutive year of losses. The airline last posted a profit in 2012.
The operating profit for the year ending December 31, 2023, stood at Ksh 10.5 billion, compared to an operating loss of Ksh 5.6 billion in the previous year, reflecting a 287% improvement. However, overheads increased by 22%, mainly due to higher employee costs and foreign currency losses from the devaluation of the Kenyan Shilling against major currencies, particularly the US Dollar.
