National carrier Kenya Airways has marked a significant milestone in its financial recovery, announcing its first profit after tax in over a decade.
The airline reported a profit of Sh513 million for the first half of the financial year ending June 30, 2024, a remarkable turnaround from the Sh21.7 billion loss recorded in the same period the previous year.
The airline’s success is attributed to its strategic turnaround plan, known as Project Kifaru.
This initiative focuses on key areas such as customer obsession, operational excellence, financial discipline, innovation, and sustainability.
“The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff,” remarked Kenya Airways Chairman, Michael Joseph.
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He further emphasised that this achievement highlights the strength and resilience of Kenya Airways as it moves towards sustained profitability.
Kenya Airways experienced substantial growth in both passenger numbers and overall capacity.
The airline saw a 10% increase in passenger numbers, reaching a total of 2.54 million.
Additionally, its capacity, measured in Available Seat Kilometers (ASKs), rose by 16% to 7.991 billion, with Revenue Passenger Kilometers (RPKs) improving by 14%.
Available Seat Kilometers (ASKs) mean the airline had more seats available on its flights, and these flights covered longer distances.
Revenue Passenger Kilometers (RPKs) on the other hand means more people bought tickets and flew with Kenya Airways.
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This growth was mirrored in the airline’s revenue, which surged by 22% to Sh91 billion, driven by the increased passenger traffic.
Despite the expansion, Kenya Airways managed to control costs effectively, with operating costs rising in line with capacity growth and overheads reducing by 22%.
The airline remains focused on completing its capital restructuring plan to reduce financial leverage and enhance liquidity.
Kenya Airways CEO, Allan Kilavuka, expressed optimism about the airline’s future, noting that the financial results demonstrate the effectiveness of their strategic initiatives.
“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.
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As the airline continues to implement its strategic priorities, Kilavuka is confident that Kenya Airways’ commitment to operational excellence, customer satisfaction, and innovation will continue to yield positive results.
