Kenya Airways makes first half-year profit in over a decade

BREAKING NEWSAugust 19, 2024 at 3:16 PM UTC

TLDR

Kenya Airways reports first half-year profit in over a decade, driven by increased passenger numbers and favorable currency conditions.
The airline's profit after tax reaches 513 million Kenyan shillings ($4 million) for January to June, marking a significant turnaround from previous losses.
Revenue rose by 22% and passenger numbers increased by 10%, with optimism for potential full-year break-even.

Kenya Airways reported its first half-year profit in over a decade, driven by an increase in passenger numbers and favorable currency conditions.

The airline posted a profit after tax of Ksh513 million ($4 million) for January to June, a significant turnaround from a Ksh21.7 billion loss in the same period in 2023. Chief Executive Allan Kilavuka attributed the profit to a 22% rise in revenue, bolstered by a 10% increase in passenger numbers.

The airline benefited from a stronger Kenyan shilling, which rallied earlier in the year after the government successfully issued a new international bond to avoid defaulting on another bond due in June. The company expressed optimism about potentially breaking even for the full year.

Key Takeaways

Kenya Airways, one of Africa's three largest airlines, fell into insolvency in 2018 after an ambitious expansion drive left it burdened with hundreds of millions of dollars in debt. The situation worsened during the COVID-19 pandemic, as the collapse in international travel severely impacted revenue. Additionally, a sharp weakening of the Kenyan shilling and rising interest rates made it increasingly difficult for the airline to service its debt. Kenya Airways has been operating at a loss since 2013, struggling to regain financial stability amid these challenges.

Kenya

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Kenya Airways

Kenya Shilling

Kenya Currency

Allan Kilavuka

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