Kenya Airways records first profit in 12 years, posts Sh5.4 billion net gain
The national carrier’s turnaround comes after a Sh22.6 billion loss in 2023, largely driven by foreign exchange gains.
Kenya Airways has recorded a profit for the first time in 12 years, posting a net profit of Sh5.4 billion for 2024.
The national carrier’s turnaround comes after a Sh22.6 billion loss in 2023, largely driven by foreign exchange gains.
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Kenya Airways Chief Executive Allan Kilavuka described the profit as historic. “It is the highest profit this company has reported in its history,” he said.
The CEO noted that the airline’s earnings before interest, tax, depreciation, and amortization stood at 20 percent in 2024, surpassing the industry average of 17 percent.
The airline’s improved financial performance was attributed to foreign exchange gains of Sh10.55 billion, a sharp contrast to the Sh15.04 billion loss recorded in 2023.
The strengthening of the local currency by more than 20 percent against the dollar played a key role in this turnaround.
Operationally, Kenya Airways saw its profit rise to Sh16.62 billion from Sh10.53 billion in 2023, supported by increased revenues and reduced costs.
Total revenue grew by six percent, reaching Sh188.4 billion, up from Sh178.4 billion in the previous year.
Passenger numbers
Passenger numbers also increased by four percent to 5.23 million from 5.04 million in 2023, while cargo volumes rose by 25 percent to 70,776 tonnes, up from 56,576 tonnes the previous year.
The airline expanded its operations by adding two cargo planes to its fleet and launching flights to new destinations, including Mogadishu in Somalia, Maputo in Mozambique, and Eldoret. These efforts contributed to the overall growth in revenue and operational efficiency.
Despite this positive development, Kenya Airways continues to face financial challenges, particularly in terms of working capital.
The airline remains in a negative equity position due to losses accumulated over the past 11 years.
To secure long-term stability, it aims to attract a new equity investor in 2025, hoping for a substantial capital injection.
However, progress on securing a strategic investor has been slow, as the government, which is the airline’s principal shareholder, is still evaluating options to address the company’s financial struggles.
Kenya Airways Board Chairman, Michael Joseph, emphasized the need for additional funding.
“We look into the future with anticipation. We have made a profit, but what Kenya Airways needs is a huge capital injection to improve, including flying to new destinations and making passenger experiences better,” he stated.
The airline also acknowledged operational challenges, including below-par on-time performance and a higher-than-normal rate of flight cancellations in 2024. Addressing these issues remains a priority as it seeks to sustain its profitability and improve service delivery.
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