Press Release -Kenya Airways Posts First Half-Year Profit of Kshs 513 million.

August 19, 2024

Kenya Airways PLC has announced a significant milestone in its journey towards profitability, marking the first time the airline has reported a profit after tax since 2013.

For the first half of the financial year ending June 30, 2024, the airline achieved a profit after tax of Kshs 513 million, from the Kshs 21.7 billion loss reported in the similar previous period.

The airline attributes the growth to its strategic turnaround plan, Project Kifaru, which emphasises 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,” said Kenya Airways Chairman, Michael Joseph.

He added: “This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”

Operating and Financial Highlights:

Passenger Growth: Kenya Airways experienced a 10% increase in passenger numbers, totaling 2.54 million.

Capacity Expansion: The airline’s capacity, measured in Available Seat Kilometers (ASKs), increased by 16% to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14%.

Revenue Surge: The airline’s total revenue grew by 22% to Kshs 91 billion, driven by higher passenger numbers.

Cost Management: Despite the expansion, operating costs rose by 22%, aligning with the growth in capacity. However, overheads were reduced by 22%, reflecting Kenya Airways’ continued commitment to cost management and operational efficiency.

Profitability: The airline’s profit after tax saw a remarkable 102% improvement, highlighting the success of the ongoing recovery strategy.

Joseph said the airline remains focused on completing its capital restructuring plan to reduce financial leverage and enhance liquidity, thus ensuring a strong foundation for long-term growth and stability. 

“Kenya Airways is committed to maintaining this positive momentum, building on the success of the first half of 2024 as we continue to strive for excellence in the aviation industry,” concluded Joseph.

Commenting on the improved financial performance, Allan Kilavuka, CEO of Kenya Airways, welcomed the positive performance ad observed, “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. This performance positions us in good stead to navigate the challenges of the aviation industry and prepare for future growth.”

As Kenya Airways continues to implement its strategic priorities, Kilavuka remained optimistic that the airlines’ commitment and dedication to driving sustainable growth, creating value for stakeholders, and delivering world-class service to its customers is already yielding desired results.

“Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline,” said Kilavuka.

Source: Corporate Kenya Airways.

INTRODUCING THE ASANTE LOUNGE, DESIGNED FOR RELAXATION AND COMFORT

FLYING 2 TIMES DAILY, DISCOVER MUMBAI WITH KENYA AIRWAYS

The enchanting Mumbai awaits! Popular for both leisure and business, Mumbai is a rare gem. Business men/women travel for trade, students for school, families for reconnections or medical assistance, and tourists for the many wonders it has to offer. 

From as low as $430 and with 14 weekly flights available between Nairobi and Mumbai, Kenya Airways has made travel easier and convenient. KQ now has two (2) daily flights operating on the Boeing B737-8. This means there is ample capacity for both cargo and passengers.

The best thing is, the flight schedule also allows for seamless onward connections to and from other destinations like Johannesburg (JNB), Lagos (LOS), Monrovia (ROB)  and Freetown (FNA)

Flight Schedule:

MUMBAI TO NAIROBI
 DayFlight NoDepartArrive
BOM-NBODailyKQ20302:4006:35
BOM-NBODailyKQ20506:4510:30
NAIROBI TO MUMBAI
 DayFlight NoDepartArrive
NBO-BOMDailyKQ20216:4501:30+1
NBO-BOMDailyKQ20420:5005:35+1

So next time you want to travel to or from Mumbai, choose comfort, convenience and authentic African hospitality on Kenya Airways.

Enjoy The Convenience Of One Ticket To Jeddah From Kenya Airways Network.

Travelling to and from the Gulf just got easier with Kenya Airways! KQ has partnered with Saudia Airlines (SV) to facilitate seamless travel for guests looking for a convenient option as they explore Jeddah for leisure or business.

With just one ticket, guests can now travel to Jeddah from Nairobi, Mombasa, Eldoret and Mogadishu with a connection through Dubai. On the other hand, travelers from Jeddah can fly to Nairobi as well as Accra and Entebe via Nairobi. Travelers from other parts of KQ’s Africa network can also enjoy the same seamless connectivity as this partnership provides a gateway into and out of the Gulf region and serves as a critical connection to Africa for the Gulf. This partnership affirms KQs commitment to connecting people, cultures and markets by providing guests with more connectivity options, itinerary flexibilityand affordable rates.

Kenya Airways Marks Remarkable Recovery with 120% Surge in Operating Profit

A picture of Kenya Airways plane flying - Kenya Airways financial performance

Kenya Airways PLC (KQ), the national carrier of Kenya, has showcased a stunning revival by reporting a substantial 120% increase in its operating profit for the fiscal year 2023. This resurgence comes on the heels of a challenging period, with the airline having recorded a loss of Kshs 5 billion in 2022. The latest financial figures, announced during the 2023 Half Year results briefing, reveal that the airline has shifted its trajectory toward profitability, posting an operating profit of Kshs 998 million.

This achievement was underpinned by a series of strategic initiatives aimed at enhancing the overall customer experience, achieving operational excellence, and ensuring prudent cash management. By capitalizing on opportunities in passenger charters and intensifying scheduled operations, Kenya Airways effectively navigated the turbulent aviation landscape.

One of the key contributors to this impressive recovery is the noteworthy growth in the cabin factor, which soared to 76.1%. This was complemented by a substantial 43% surge in passenger numbers, amounting to 2.3 million. Additionally, the Group’s revenue witnessed a remarkable upswing, reaching Kshs 75 billion—a substantial 56% increase compared to the same period the previous year.

Read Also: South African Airways Launches New Codeshare Flights with Lufthansa, Swiss to Follow Soon

The airline’s leadership attributes these accomplishments to a combination of factors, including strategic partnerships with other airlines, the renegotiation of lease rentals, and comprehensive cost-reduction measures. The concerted efforts of management seem to have paid off as Kenya Airways navigated the tumultuous conditions of the aviation industry.

During an investor briefing event, Kenya Airways Chairman Michael Joseph expressed his optimism, stating, “These exceptional figures underscore the airline’s outstanding performance during the period and offer encouraging indications that ongoing recovery and turnaround initiatives are bearing fruit.”

Allan Kilavuka, Kenya Airways Group Managing Director and CEO, emphasized the airline’s progress in multiple domains. “We have enhanced our customer experience at different touchpoints, significantly improved the reliability and availability of our aircraft, and elevated our On-Time Performance (OTP) from a low 58% at the beginning of the year to 77% by the end of June, with a target to exceed 80%.”

Despite these triumphs, Kenya Airways faced headwinds in the form of foreign exchange losses, amounting to Ksh 17 billion on monetary items, loans, and leases. Consequently, the airline reported a loss before tax of Kshs 22 billion. The impact of legacy debt and the devaluation of the Kenyan shilling against major currencies loomed large, impeding the airline’s overall performance.

In response to these challenges, Allan Kilavuka stated, “We are actively collaborating with our stakeholders and the Kenyan government to address the legacy debt issue. The devaluation of the Kenyan shilling, which has depreciated by 14% against the dollar since January, exacerbates our financial situation due to the majority of our transactions being conducted in foreign currencies. This has consequently driven up our overhead costs by 22%.”

Looking toward the future, the International Air Transport Association (IATA) predicts a positive trajectory for the aviation industry. Kenya Airways aims to continue its momentum by implementing turnaround strategies and reinforcing its position in the market.

Allan Kilavuka outlined the airline’s outlook, saying, “Our focus moving forward is on recapitalizing the business to establish Kenya Airways on a solid foundation, ensuring long-term growth. We remain committed to expanding our network and optimizing our fleet to accommodate increased passenger and cargo capacities. Encouragingly, forward bookings for the second half of the year show a promising trend, beginning with a robust summer peak, particularly in July and August, where our load factors are surpassing those of the previous year.”

Top of Form

Source: Airspace-Africa.