After years of grappling with financial constraints, Kenya Airways’ (KQ) leadership is optimistic of better days in business.
Speaking before members of the National Assembly Committee on Transport on Tuesday, October 24, KQ CEO Allan Kilavuka guaranteed the legislators profitability based on financial projections.
According to him, projections have indicated that KQ will bounce back to profit making ways in the financial year 2024.
“We are confident that Kenya Airways will return to net profitability in the financial year 2024,” stated Kilavuka.
According to him, the projected growth will be propelled by the 56% increase in group revenue which hit an impressive Ksh 75 billion.
Further, Kialvuka noted that passenger numbers had shot to 2.3 million, a 43% growth from 1.6 million in the previous year.
This, he added, signified a 131 % gross profit improvement.
Project Kifaru unveiled
In an earlier statement, Kilavuka hinted at a new strategic plan named Project Kifaru aimed at propelling the Airline back on track.
According to him, various indicators have pointed towards a bright future including the airline’s recently announced first operating profit in over six years.
Kilavuka said that the first phase of Project Kifaru had been executed successfully and contributed to KQ’s operating profit announced during the half year results.
Also Read: KQ Announces More Flights to London
The goal, he noted, was to increase the company’s revenue and maintain customer and operational excellence.
However, the CEO warned that progress in the aviation industry is not solely dependent on profit making.
In his article, Kilavuka said that although the common notion is that success is measured based on profit- other factors including progress should be considered.
As such, he argued that KQ’s success in recent years should be evaluated based on the progress made in driving the airline back to newfound glory.
“In aviation, progress is not only about profitability. It is the sum total of several moving parts which contribute to the whole,” Kilavuka noted.
“The recent results announcing an operating profit for the first time in six years is as a result of the multiple levers that we are pulling.”
According to Kilavuka, the biggest challenge facing the execution of the Project Kifaru is the huge debt book that has affected its operations.
Also Read: Treasury Reduces KQ Bailout by 10 billion Shillings
He, however, maintained that the project will continue and that he would divulge more details on the project in the coming days.
When the rain started beating KQ
For over a decade, the once giant airline in Africa has struggled with losses, a trajectory blamed on the Project Mawingu which was designed to make a competitive global airline.
Adopted under former CEO Titus Naikuni’s tenure, Mawingu would see KQ expand operations significantly both in terms of fleet and destinations.
However, the lofty ambition plunged into headwinds owing to several factors.
Among the reasons blamed for the botched Project Mawingu include a delay in acquiring the Boeing 787 Dreamliner aircraft which were to be integral to the program.
Additionally, Kenya’s aviation industry suffered setbacks caused by among others an Ebola outbreak in West Africa which disrupted several routes for KQ.
In addition, terror activities and subsequent travel advisories against Kenya slowed down Kenya’s aviation traffic hence causing unprecedented loss of revenue.
