• April 19, 2024
  • Last Update April 19, 2024 7:23 AM
  • Nairobi

Kenya Airways records operating profit of Sh10.5

Business

By Peter Ochieng

Kenya Airways (KQ) has announced an operating profit for the first time in over 5 years.

The ongoing recovery and turnaround initiatives resulted in the airline recording an operating profit of Sh10.5 billion for the year ended December 31, 2023.

The figures represent a 287 percent growrh, compared to an operating loss of Sh5.6 billion in the prior year.

Speaking during an investor briefing event, Kenya Airways Chairman, Michael Joseph said, “These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector.”

He added, “They also confirm the operational viability of the airline business and demonstrate that the management’s ongoing efforts to restore profitability are yielding positive results.”

KQ’s total revenue increased by 53 percent to close at Sh178 billion, mainly attributable to a 43 percent growth in passenger numbers against prior year, and to only 2 percent below the pre-pandemic levels which is quite a commendable achievement. 

Kenya Airways Group Managing Director and CEO, Allan Kilavuka, said, “During the year, the company’s main focus remained on improving customer experience, operational excellence, and cash conservation.

“These efforts resulted in the airline improving its On-Time Performance (OTP) to a high of 76% from an average low of 58% at the beginning of the year, ranking it as Africa’s second most efficient airline. Additionally, the introduction of the Asante rewards loyalty program and the revamp of KQ’s website aimed to better appreciate and reward customer loyalty while improving user-friendliness and functionality.”

He added: “The company also exploited opportunities of raising the much-needed revenues by ramping up its scheduled operations as well as through passenger charters. Other initiatives undertaken by the management included partnerships with other airlines and cost containment measures.”

Despite facing a Sh24 billion in foreign exchange losses on monetary items, loans, and leases, this year’s performance marked a major milestone in the Group’s turnaround strategy.

Kilavuka emphasised that the airline’s top priority going forward, is to continue building on the gains made in the airline’s turnaround strategy, Project Kifaru.

The good news comes as International Air Transport Association (IATA) predicts full recovery of the aviation industry from the Covid-19 crisis in 2024.

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