Kenya Airways Reports Significant Profit after Tax
By The COAST Reporter
Email, thecoastnewspaper@gmail.com
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.
Kenya Airways, for the first half-year profit, posted Ksh513 million after tax for the first time in the past 11 years.
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.
According to him this achievement underscores the strength and resilience of Kenya Airways as it moves forward on its path to sustained profitability.
Operating and financial highlights indicate that passenger growth of the airline experienced a 10 per cent increase in passenger numbers, totaling 2.54 million.
The airline’s capacity, measured in Available Seat Kilometers (ASKs), increased by 16 per cent to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14 per cent.
The airline’s total revenue grew by 22 per cent to Ksh91 billion, driven by higher passenger numbers. Despite the expansion, operating costs rose by 22 per cent aligned with the growth in capacity.
However, overheads were reduced by 22 per cent, thus, reflecting Kenya Airways’ continued commitment to cost management and operational efficiency.
The airline’s profit after tax saw a remarkable 102 per cent improvement; highlighting the success of the ongoing recovery strategy.
The chairman 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.”
Commenting on the improved financial performance, Allan Kilavuka, Kenya Airways CEO, welcomed the positive performance saying their financial results were a clear indication that their strategic initiatives were 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.”
