Kenya Airways has reported a record Ksh 5.4 billion profit after tax for the full year period ending December 31, 2024.
The airline says net profit which has risen by 124pc from a loss of Ksh 22.7 billion reported last year is attributed to the higher passenger numbers and an increase in operating profit during the period.
“This achievement marks a major turnaround of the performance of the airline, which emphasizes on customer obsession, operational excellence, financial discipline, culture transformation innovation and sustainability,” said Michael Joseph, KQ Chairman.
The flag carrier also recorded a 58pc surge in operating profit which increased by 58pc to Ksh 16.2 billion compared to Ksh 10.5 billion posted in 2023 supported by higher revenue which grew from Ksh 188.5 billion from Ksh 178.5 billion, a 6pc increase.
An increase in number of passengers by 4pc to 5.23 million led to an increase in capacity by 10pc as cabin factor also improved to 75.2pc.
According to Joseph, the strong and stable shilling provided a viable operating environment for the carrier. The airline gained Ksh 10.6 billion from forex cashflow hedges from Ksh 15 billion loss a year earlier.
“Total costs was 9pc lower than prior year mainly due to savings on overheads as well as reduction in the net finance costs as a result of the stable currency. Direct operating costs was however up by 8pc whereas fleet ownership costs increased by 5pc in line with increase in the capacity deployed,” added Joseph.
Despite good performance last year, the airline projects prevailing unavailability of new aircrafts as well as those on lease, engine and spare parts shortage and insufficient capital for expansion to dent its recovery strategy dubbed Project Kifaru.