Aasai

Kenya Airways has reported a net profit of KSh 5.4 billion for 2024, marking its first profitable year in over a decade. This turnaround follows a KSh 22.6 billion loss in 2023, with the recovery largely driven by foreign exchange gains and improved operational efficiency.

A Historic Turnaround for Kenya Airways

Kenya Airways CEO Allan Kilavuka described the profit as a historic achievement, noting that it is the highest the airline has ever recorded.

"This is the highest profit this company has reported in its history," Kilavuka stated.

The airline’s earnings before interest, tax, depreciation, and amortization (EBITDA) stood at 20% in 2024, surpassing the industry average of 17%.

Key Factors Behind the Profit

📌 Foreign Exchange Gains: The airline recorded KSh 10.55 billion in forex gains, compared to a KSh 15.04 billion loss in 2023.
📌 Currency Strengthening: The Kenyan shilling appreciated by more than 20% against the US dollar, easing financial pressure.
📌 Operational Efficiency: Operating profit increased to KSh 16.62 billion, up from KSh 10.53 billion in 2023.
📌 Revenue Growth: Total revenue rose by 6%, reaching KSh 188.4 billion, up from KSh 178.4 billion in 2023.

Increase in Passenger and Cargo Numbers

Kenya Airways also saw significant growth in its passenger and cargo business:

✈ Passenger numbers rose by 4%, reaching 5.23 million, up from 5.04 million in 2023.
📦 Cargo volumes surged by 25% to 70,776 tonnes, compared to 56,576 tonnes the previous year.

To support this expansion, the airline added two cargo planes and launched new routes to Mogadishu (Somalia), Maputo (Mozambique), and Eldoret (Kenya).

Challenges Still Ahead

Despite the profitable turnaround, Kenya Airways still faces financial challenges, particularly in working capital and long-term sustainability.

🔹 The airline remains in negative equity due to losses accumulated over the past 11 years.
🔹 Efforts to secure a strategic equity investor in 2025 are ongoing but have been slow, as the government evaluates financing options.

Kenya Airways Board Chairman Michael Joseph emphasized the need for additional funding:

"We have made a profit, but what Kenya Airways needs is a huge capital injection to expand, improve routes, and enhance passenger experience."

Additionally, the airline is working to address operational issues, including on-time performance and a high rate of flight cancellations in 2024.

The Road Ahead

Kenya Airways return to profitability signals a potential recovery for the national carrier, but the company must secure new investment, maintain operational efficiency, and improve service delivery to sustain this success in the long term.