Kenya Airways reports profit for the first time since 2017
TLDR
- Kenya Airways reports operating profit of 10.53 billion shillings, marking a significant turnaround since 2017.
- CEO attributes success to 53% revenue increase, reaching 178.5 billion shillings, driven by a 35% rise in passenger numbers.
- Plans for expansion include adding flights to popular routes like Nairobi to London and acquiring new aircraft to meet demand.
Kenya Airways announced this week that it recorded an operating profit of 10.53 billion shillings ($80.38 million) last year. As one of Africa's three largest carriers, Kenya Airways faced financial challenges, sliding into insolvency in 2018 due to debt accumulated from an expansion initiative.
The operating profit reported for last year marks a significant turnaround for the airline, being its first since 2017. CEO Allan Kilavuka attributed this positive result to a substantial 53% increase in revenue, reaching 178.5 billion shillings.
The revenue growth was fueled by a notable 35% rise in passenger numbers. Kilavuka highlighted plans to capitalize on this momentum by expanding flights on popular routes such as Nairobi to London. Additionally, Kenya Airways intends to acquire new aircraft to meet the growing demand.
Key Takeaways
Kenya Airways has faced persistent financial and operational hurdles over recent years, leading the Kenyan government to inject additional funds into the airline. The last full-year operating profit was reported in 2017, amounting to $11.3 million (Ksh1.5 billion). Subsequent years proved to be challenging, exacerbated by the COVID-19 pandemic, which further strained the carrier's operations. However, there were signs of improvement in 2023, with Kenya Airways achieving notable organizational milestones. These included the resumption of some pre-pandemic routes, enhancements in on-time performance, and the launch of an independent frequent flyer program. Despite ongoing challenges, these positive developments signify progress for the airline as it navigates a complex operating environment and works towards sustainable growth and stability.
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