Kenya Airways Reports First Half-Year Profit in Over a Decade

Turnaround Achieved Through Increased Passenger Numbers and Strengthening Kenyan Shilling

Kenya Airways reported a profit after tax of 513 million Kenyan shillings ($4 million) for the first half of the year, reversing a 21.7 billion shilling loss from the same period last year.

The airline credited the turnaround to increased passenger numbers and is optimistic about breaking even for the full year.

CEO Allan Kilavuka announced that the company is close to finalizing negotiations with a strategic equity investor, but withheld further details.

A Brief History of Kenya Airways

Once one of Africa’s top three airlines, Kenya Airways fell into insolvency in 2018 due to heavy debt from an expansion drive.

The COVID-19 pandemic, a weakening Kenyan shilling, and higher interest rates worsened its financial situation. The airline has been struggling financially since 2013.

Recent Developments

Kilavuka called the first-half results a milestone and expressed “reasonable confidence” in achieving full-year profitability for 2024.

The airline saw a 22% increase in revenue and a 10% rise in passenger numbers. Additionally, the strengthening Kenyan shilling, supported by a successful international bond sale, helped reduce foreign exchange losses.

Conclusion

Kenya Airways’ first-half profit is a significant milestone for the airline, marking a turnaround from years of financial struggles. With increased passenger numbers and a strengthening Kenyan shilling, the airline is optimistic about achieving full-year profitability.

FAQs

Q: What was Kenya Airways’ profit after tax for the first half of the year?

A: 513 million Kenyan shillings ($4 million)

Q: What was the airline’s loss for the same period last year?

A: 21.7 billion shillings

Q: What is the airline’s outlook for the full year?

A: The airline is optimistic about breaking even for the full year.