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Kenya Airways has reported a record after-tax profit of Sh5.4 billion for the year ending December 31, 2024.
This marks a strong turnaround from a loss of Sh22.6 billion in 2023. The airline credits this major improvement to its recovery strategy, Project Kifaru.
Increased Capacity and Passenger Numbers
The profit surge was driven by higher passenger numbers, cost control, and a stronger Kenyan shilling.
Capacity, measured by Available Seat Kilometers (ASKs), rose by 10% to 16.2 billion. The cabin factor also improved to 75.2%, while passenger numbers grew by 4% to 5.23 million.
ASK is a measure of an airline's passenger carrying capacity, calculated by multiplying the number of available seats by the distance flown in kilometers
Revenue also saw an increase. The airline recorded Sh138 billion in total revenue, which is a 6% jump from the previous year.
This was helped by increased cargo tonnage and a rise in passenger numbers. Yield remained stable despite more flights.
Operational Excellence and Cost Control
On the financial side, the airline’s turnover rose by 6%, while operating profit jumped by 58%.
Profit after tax grew by a massive 124%. Direct operating costs rose by 8%, in line with the increase in capacity.
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However, overall costs were 9% lower than the previous year due to savings on overheads and a drop in finance costs.
Michael Joseph, Chairman of Kenya Airways, said this performance shows that their turnaround efforts are working.
He added that it is the highest profit and highest number of passengers ever recorded in the airline’s history. He thanked the government, staff, shareholders, and customers for their support.
Customer service
The company focused on operational excellence and customer service in 2024.
It added two cargo freighters to its fleet, boosting exports of Kenyan goods to the Middle East. It also got recertified by EASA, proving its aircraft maintenance met global standards.
This move helped the airline attract new clients and reduce maintenance costs.
Kenya Airways resumed flights between Nairobi and Maputo. KQ also launched new routes such as Eldoret to Mogadishu. These moves helped increase revenue and expand its network.
The airline plans to keep building on these gains. Its focus in the short term will be completing its financial restructuring. The aim is to cut debt and boost cash flow.
There are also plans to invest in new aircraft, modernise existing cabins, and grow other parts of the business.
Despite the good news, the airline warned that challenges remain. The global aviation industry is still struggling with aircraft and engine shortages.
There is also a lack of spare parts. These issues could slow the pace of recovery and expansion.
Still, the airline remains positive. It says it will continue working to reduce costs and increase revenue. It also hopes to maintain strong customer service and operational discipline.
Kenya Airways ended the year with confidence, calling its 2024 results a clear sign that the airline is back on track. The board and management say they are committed to sustaining this progress into the future.