Kenya Airways Soars Back to Profitability After Decade-Long Drought

Kenya Airways has announced a remarkable turnaround, reporting its first half-year profit in over a decade. The airline posted a profit after tax of 513 million Kenyan shillings ($4 million) for the period between January and June, a significant reversal from the 21.7 billion shilling loss incurred during the same period last year.

Credit: Airspace Africa

The airline attributes its success to a surge in passenger numbers, with a 10% increase in travelers contributing to a 22% rise in revenue. Additionally, the strengthening Kenyan shilling, bolstered by a successful international bond sale, helped mitigate foreign exchange losses.

CEO Allan Kilavuka hailed the first-half results as a milestone, expressing "reasonable confidence" in achieving full-year profitability for 2024. The airline is also on the cusp of finalizing negotiations with a strategic equity investor, although details remain under wraps.

Credit: Airspace Africa

This marks a significant turning point for Kenya Airways, which has struggled financially since 2013 and fell into insolvency in 2018 due to heavy debt and external factors such as the COVID-19 pandemic. Once one of Africa's top three airlines, the carrier is now poised for a comeback, with a renewed focus on profitability and growth.