Kenya Airways records first operating profit in seven years

Kenya Airways, the national carrier of Kenya, unveiled promising financial results on Tuesday, signaling a notable turnaround after seven years of struggle. In 2023, the airline reported an operating profit of Ksh10.5 billion (US$80 million), a stark contrast to the Ksh5.6 billion (US$43 million) operating loss recorded in 2022.

In a press release, the airline, primarily owned by the Kenyan government, disclosed a significant reduction in its after-tax losses, decreasing from over Ksh38 billion (US$290 million) to nearly Ksh23 billion (US$175 million).

The surge in total revenue to Ksh178 billion (US$1.36 billion), marking a 53 percent increase, was attributed primarily to a notable 35 percent rise in passenger numbers, reaching 5.04 million for the year ended December 31, according to the airline’s audited results.

Despite grappling with substantial debt and continuous losses, exacerbated by the challenges posed by the COVID-19 pandemic, Kenya Airways managed to achieve this turnaround.

Chairman Michael Joseph hailed the milestone of returning to profitability as significant, emphasizing the airline’s exceptional performance and its contribution to the ongoing recovery of the aviation sector. He expressed confidence in the airline’s operational viability and praised management’s efforts to restore profitability.

CEO Allan Kilavuka outlined the company’s immediate focus on executing a capital restructuring plan aimed at reducing financial leverage and enhancing liquidity.

With the Kenyan government holding a 48.9 percent stake and Air France-KLM holding 7.8 percent, Kenya Airways remains a critical player in the region’s aviation landscape.