Kenya Airways Soars to report Historic Sh5.4 billion Profit

National carrier Kenya Airways has posted a net profit of Sh5.4 billion in the year ending December 2024, the highest since its inception 48 years ago.

The impressive results helped by reduced debt service costs mark the airline’s return to profitability after 11 years of posting losses.

The new profit reversed a net loss of Sh22.6 billion in the year to December 2023. The government took over KQ’s $641.4 million (Sh82.7 billion) loan as part of interventions to aid the airline’s turnaround plan.

“We are very pleased to announce that for the first time in 11 years we have come back to profitability posting a profit of Sh5.4 billion and this is the highest profit that this company has recorded in its history,” said KQ chief executive Alan Kilavuka during release of the full year company results on Tuesday.

Net finance costs in the year under review declined by 67 percent to Sh11 billion from Sh33.3 billion, attributed to restructuring of some of the loans and others taken up by the government.

The carrier maintained an operating profit for the period at Sh16.6 billion, up from Sh10.5 billion the year before.

The airline recorded a 4 percent increase in passenger numbers from 5.04 million to 5.23 million –the highest numbers of passage uplisted since inception of the airline 48 years ago.

Cargo volumes went up by 25 percent to 70.77 tonnes from 56.57 tonnes the previous year, attributed to acquisition of two new aircrafts by airline in 2024

Among challenges the airline is facing include constraints in spare parts and in the supply chain which has resulted to grounding of its three aircrafts significantly impacting business.

Future plans for the airline include increasing cargo to 20 percent of the business from the current 10 percent as well as diversify business and introduce four new strategic business units.

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

During the year under review, the passenger business was significantly impacted by the Gen Z protests that interrupted travel in and out of the country.

ligadwah@businessdayafrica.org