Foreign Exchange Gains Lift KQ to First Profit in 11 Years 

Foreign exchange gains of Ksh10.55 billion helped Kenya Airways (KQ) post its first annual profit in 11 years, as the local currency strengthened more than 20 percent against the dollar in 2024.

The national carrier reported a net profit of Ksh5.4 billion for the year ending December 2024, reversing a net loss of Ksh22.6 billion in the previous year.

The turnaround was also supported by reduced debt service costs after the Kenyan government assumed KQ’s Ksh82.7 billion loan as part of a restructuring plan.

“We are very pleased to announce that for the first time in 11 years we have come back to profitability… this is the highest profit that this company has recorded in its history,” KQ chief executive Alan Kilavuka said on Tuesday.

Operating profit rose to Ksh16.62 billion from 10.53 billion in 2023, driven by higher revenues and lower costs.

Net finance costs declined 67 percent to Ksh11 billion from 33.3 billion, following loan restructuring and government intervention.

The airline carried 5.23 million passengers in 2024, a four percent increase from 5.04 million the previous year, the highest in its 48-year history.

Cargo volumes surged 25 percent to 70.77 tonnes, aided by the acquisition of two new aircraft.

However, challenges remain, including supply chain constraints that have grounded three aircraft, affecting operations. The airline aims to expand its cargo business to 20 percent of total revenue, up from the current 10 percent, and introduce four new strategic business units.

“The four strategic business units will support the de-risking of our business and increase the margins that are eroded because of the passenger business,” Kilavuka said.

Passenger operations were disrupted during the year by Gen Z protests that impacted travel in and out of Kenya.

ligadwah@businessdayafrica.org