Kenya Airways (KQ) PLC has posted a 124 percent increase in it full year report for the financial year ending December 31, 2024, to Ksh 5.4 billion in profit after tax.
This represents a remarkable turnaround from a loss of Ksh 22.6 billion reported the previous year, reflecting an improvement of Ksh 28 billion and a 124% increase in net profit.
This is the first time Kenya Airways has posted a profit over a decade.
Kenya Airways said this achievement has significantly strengthened the company’s financial health, positioning it for future growth and stability.
“This success highlights the effectiveness of the recovery strategy under Project Kifaru, which has focused on enhancing operational performance through various initiatives and delivering exceptional customer service through specific actions,” KQ said.
“This comprehensive strategy has been instrumental in our turnaround.”
Kenya Airways Profit Rises 124% to Ksh5.4 Billion
The total revenue collected by KQ rose by 6% to Ksh 188.5 billion, driven by a 4% increase in passenger numbers as well as 25% growth in cargo tonnage. The total costs increased by 9%, aligning with capacity growth.
Operating profit surged by 58% to Ksh 16.6 billion, reflecting effective cost management. At the same time, the operating costs increased by 2% to Ksh 171.9 billion while the net finance costs decreased by 67% to Ksh 11.1 billion.
Profit before tax was Ksh 5.5 billion, compared to a loss of Ksh 22.8 billion in 2023, while cargo volume rose by 25% to 70,776 tonnes.
The operating margin increased from 5.9% to 8.8%, while the net margin improved from -12.7% to 2.9%. Passenger numbers grew by 4% to 5.23 million.
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Financial Highlights
At the same time, the capacity offered increased by 10%, measured in Available Seat Kilometers (ASKs) and the passenger numbers grew by 4%, reaching an impressive total of 5.23 million.
Despite the increase in market capacity, yield remained consistent with the previous year.
Market capacity increased by 10% to 16.227 billion Available Seat Kilometers (ASKs), up from 14.804 billion in the last year.
The uptake of this capacity, measured in Revenue Passenger Kilometers (RPKS) improved by 5% resulting in in a cabin factor of 75.2%.
While commenting on the historic financial performance, Kenya Airways PLC Chairman Michael Joseph stated that these results not only set records for the highest number of passengers and turnover in Kenya Airways’ history but also signify the airlines strong operational viability and resilience.
“The impressive financial performance underscores our ongoing commitment to customer focus, operational excellence, financial discipline, cultural transformation, innovation, and sustainability,” he said.
Meanwhile, Kenya Airways’ Group Managing Director and CEO Allan Kilavuka, mentioned that the airline is still focused on attracting a strategic investor to ensure long-term sustainability.
“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,” Kilavuka said.
“We are dedicated to completing our capital restructuring plan to reduce financial leverage, enhance liquidity, and remain an attractive investment for strategic investors.”
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KQ 2023 Results
For the first half of the financial year ending June 30, 2024, the airline achieved a profit after tax of Ksh 513 million, from the Ksh 21.7 billion loss reported in the similar previous period.
The airline attributed the growth to its strategic turnaround plan, Project Kifaru, which emphasized customer obsession, operational excellence, financial discipline, innovation, and sustainability.
In 2023, Kenya Airways recorded a loss after tax reduction by 41% to Ksh 23 billion from Ksh 38 billion. This was the 10th consecutive year the airline has experienced losses. It last posted a profit in 2012.
The airline’s operating profit was Ksh 10.5 billion for the year ended December 31, 2023, compared to an operating loss of Ksh 5.6 billion in the prior year, representing a 287% growth.
Overheads increased by 22% due increase in employee costs as well as foreign currency losses caused by devaluation of the Kenya Shilling against major world currencies, especially the US Dollar.
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