Kenya Airways PLC has reached a pivotal milestone, reporting its first profit after tax since 2013. For the first half of the financial year ending June 30, 2024, the airline recorded a profit after tax of Kshs 513 million, a remarkable turnaround from the Kshs 21.7 billion loss reported during the same period last year. This achievement marks a significant step forward in the airline’s journey towards sustained profitability and underscores the effectiveness of its strategic recovery plan.
Project Kifaru: A Strategic Blueprint for Success
The impressive financial performance is largely attributed to Kenya Airways’ strategic turnaround plan, known as Project Kifaru. This plan focuses on five key pillars: customer obsession, operational excellence, financial discipline, innovation, and sustainability. Together, these elements have driven the airline’s recovery and positioned it for continued growth.
Kenya Airways Chairman, Michael Joseph, highlighted the significance of this achievement, stating, “The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff. This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability.”
Operational and Financial Highlights
Kenya Airways’ recent success is reflected in several key performance metrics:
- Passenger Growth: The airline experienced a 10% increase in passenger numbers, totaling 2.54 million travelers during the first half of 2024.
- Capacity Expansion: Kenya Airways expanded its capacity, as measured in Available Seat Kilometers (ASKs), by 16% to 7.991 billion ASKs. Revenue Passenger Kilometers (RPKs) also saw a 14% improvement.
- Revenue Surge: Total revenue for the airline grew by 22% to Kshs 91 billion, driven by the increase in passenger numbers and capacity expansion.
- Cost Management: Despite the airline’s expansion, operating costs rose by 22%, in line with the growth in capacity. Notably, overhead costs were reduced by 22%, demonstrating Kenya Airways’ continued focus on cost management and operational efficiency.
- Profitability: The airline’s profit after tax improved by an impressive 102%, reflecting the success of its ongoing recovery strategy.
A Strong Foundation for Future Growth
Kenya Airways CEO, Allan Kilavuka, expressed optimism about the airline’s trajectory, stating, “Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes. We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth. This performance positions us in good stead to navigate the challenges of the aviation industry and prepare for future growth.”
Looking ahead, Kenya Airways remains committed to completing its capital restructuring plan, which aims to reduce financial leverage and enhance liquidity. This plan is designed to lay a strong foundation for long-term growth and stability, ensuring that the airline continues to build on its recent successes.
Kilavuka concluded by emphasizing the airline’s dedication to maintaining its positive momentum, “Our commitment to operational excellence, customer satisfaction, and innovation remains strong as we continue to build a stronger and more resilient airline.”
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