Kenya Airways Achieves First Profit in Over a Decade

Kenya Airways (KQ) has made a remarkable financial turnaround, reporting a net profit of KSh5.4 billion ($41.7 million) for the financial year ending December 31, 2024. This is a major milestone for the airline, which has been experiencing losses for over ten years. The new profit marks a significant improvement from the KSh22.6 billion ($205.4 million) loss recorded in 2023.

Revenue and Operational Growth

KQ’s total revenue increased by 6% to KSh188.5 billion, driven by a 4% rise in passenger numbers and a remarkable 25% growth in cargo tonnage. The airline’s operating profit also surged by 58% to KSh16.6 billion, reflecting the success of its cost management strategies. Additionally, net finance costs dropped by 67% to KSh11.1 billion, easing financial pressures.

Key Factors Behind the Profit

One of the biggest contributors to this success was a foreign exchange gain of KSh10.55 billion. This is a sharp contrast to the foreign exchange loss of KSh15.04 billion recorded in 2023. The gain resulted from the strengthening of the Kenyan shilling, which appreciated by more than 20% against the US dollar in 2024.

Also read: Kenya Airways Relists on Nairobi Securities Exchange After Five-Year Suspension

Leadership Acknowledges the Success

Kenya Airways Chairman Michael Joseph credited the success to the airline’s recovery strategy under Project Kifaru. This initiative focuses on improving operational performance and delivering top-notch customer service. He stated that these results prove KQ’s strong operational viability and resilience.

Group Managing Director and CEO Allan Kilavuka emphasized the airline’s commitment to completing its capital restructuring plan. The goal is to reduce financial leverage and improve liquidity. He noted that despite global challenges in the aviation industry, KQ’s turnaround strategy is delivering positive results.

Kenya Airways’ return to profitability is a strong indicator of its growth and recovery efforts. The airline remains focused on sustaining this progress and strengthening its position in the aviation industry.