Kenya Airways Swings to Profit in 2024

Kenya Airways Plc has achieved a record-breaking after-tax profit of KSh 5.4 billion for the financial year ended December 31, 2024, a significant improvement of KSh 28 billion from a loss of KSh 22.6 billion reported in the previous year. This turnaround is a testament to the airline’s successful recovery strategy, Project Kifaru, and its focus on customer experience, operational excellence, financial discipline, and sustainability.

Operating Highlights

1. Capacity offered in terms of Available Seat Kilometers (ASKs) increased by 10%.

2. Cabin factor stood at 75.2%.

3. Passenger numbers grew by 4%, reaching 5.23 million from 5.04 million.

4. Yield remained steady despite increased market capacity.

Financial Highlights

1. Turnover rose by 6% due to higher passenger numbers.

2. Direct operating costs increased by 8%, aligning with capacity growth.

3. Operating profit surged by 58%.

4. Profit after tax improved by 124%.

   
   

Revenue and Capacity

Market capacity expanded by 10%, reaching 16.227 billion ASKs, up from 14.804 billion ASKs in 2023. Revenue Passenger Kilometers (RPKs) improved by 5%, leading to a 75.2% cabin factor. Total revenue grew by 6%, reaching KSh 188 billion, driven by a 4% increase in passenger numbers and a 25% surge in cargo tonnage.

Cost Management

Total costs were 9% lower than the previous year due to overhead savings and a reduction in net finance costs resulting from a stable currency. However, direct operating costs rose by 8%, while fleet ownership costs increased by 5% due to expanded capacity deployment.

Strategic Achievements

Throughout 2024, Kenya Airways focused on enhancing customer experience, operational efficiency, and cash conservation. Key milestones include:

• Fleet Expansion: Two cargo freighters were added to support growing demand in the Middle East, boosting meat exports and horticultural product shipments, key foreign exchange earners for Kenya.

• EASA Recertification: This certification confirms that KQ’s maintenance practices meet international standards, allowing the airline to attract third-party customers and save costs through in-house redelivery checks.

• Network Optimization: The airline resumed direct flights between Nairobi and Maputo and added new destinations, including Eldoret and Mogadishu, contributing to revenue growth.

  
  

Future Outlook

Looking ahead, Kenya Airways aims to build on the success of Project Kifaru by strengthening its financial position and expanding its operations. The key focus areas include:

1. Completing capital restructuring to enhance financial stability.

2. Increasing fleet capacity and modernizing aircraft cabins.

3. Growing diversified business segments.

4. Strengthening strategic partnerships to drive long-term growth.

   
   

The Board and management remain committed to ensuring sufficient funding for sustainable operations. With a clear vision and a strong recovery strategy, Kenya Airways is poised for long-term success, reaffirming its position as a key player in the global aviation industry.

Source: KQ Full Year Financials

Kenya Airways