Kenya Airways Soars: First Operating Profit in 7 Years
On Tuesday, Kenya Airways, the national airline facing challenges, announced that it had achieved an operational profit in 2023, marking its first in seven years.
The sum of 10.5 billion Kenyan shillings (equivalent to approximately $80 million) for the fiscal year ending on December 31 indicates a considerable shift from a 5.6 billion shilling operating deficit in 2022, a development celebrated by chairman Michael Joseph as a “major achievement.”
The airline, primarily owned by the Kenyan government, stated in a release that its net loss decreased to nearly 23 billion shillings from over 38 billion shillings in the previous year.
The airline’s audited results statement shows that total revenue for the year saw a significant increase of 53 percent to reach 178 billion shillings. This surge was primarily driven by a 35 percent rise in passenger numbers, totaling 5.04 million.
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Kenya Airways has struggled with substantial debt and sustained losses over several years, despite receiving multiple government bailouts. The airline, much like the broader aviation sector, faced severe challenges due to the impact of the Covid-19 pandemic.
“These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector,” Joseph said in a statement.
“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.”
CEO Allan Kilavuka said the company’s focus in the near term was on completing a “capital restructuring plan whose main objectives are to reduce the company’s financial leverage and increase liquidity”.
The Kenyan government holds a 48.9 percent share in Kenya Airways, whereas Air France-KLM possesses a 7.8 percent stake.
The airline was established in 1977 after the collapse of East African Airways and currently operates flights to 45 destinations worldwide, with 37 of them located in Africa.
Kenya Airways Soars: First Operating Profit in 7 Years
