Kenya Airways has posted a full-year profit of Ksh.5.4 billion for the year 2024, marking a dramatic recovery from the previous year when the airline recorded a loss of over Ksh.22 billion. This is the first time in over a decade that the airline has reported a full-year profit.
The significant turnaround in profitability was primarily driven by forex gains and an increase in total revenues. A key factor contributing to this positive performance was the strengthening of the Kenyan shilling, which resulted in forex gains of Ksh.10.5 billion. This was a stark contrast to the Ksh.15 billion forex loss suffered in 2023 due to the shilling’s depreciation.
The airline’s operating profit rose to Ksh.16.6 billion, up from Ksh.10.5 billion in 2023. Additionally, total revenue increased by 6% to Ksh.188.4 billion, compared to Ksh.178.4 billion in the previous year.
Kenya Airways experienced an increase in passenger numbers, ferrying 5.2 million passengers in 2024, up from 5 million in 2023. This growth was attributed to the addition of three new destinations: Mogadishu, Eldoret, and Maputo. Furthermore, cargo operations saw a significant boost, with volumes increasing by 25% from approximately 56,000 tonnes to over 70,000 tonnes. This growth followed the acquisition of two additional cargo aircraft, which strengthened the airline’s freight capacity.
Despite the improved financial performance, the airline remains in a negative equity position due to the impact of past losses. As a result, it is not yet in a position to pay dividends. Instead, all available funds will be reinvested into the business to ensure sustainable growth and long-term stability.
To further support its growth strategy, Kenya Airways is calling for improvements to airport infrastructure at Jomo Kenyatta International Airport (JKIA). The airline believes that better facilities are necessary to accommodate the increasing number of passengers and ensure smooth operations.
There is a growing concern regarding the state of airport facilities, especially in terms of handling capacity. Given the projected growth in passenger numbers, the existing infrastructure may not be sufficient. Additionally, there have been persistent complaints about maintenance issues, particularly leaks during rainy weather. The airline emphasizes the need for long-term solutions to address these challenges and enhance the overall experience for travelers.
With its latest financial performance, Kenya Airways is demonstrating resilience and a clear path toward recovery. While challenges remain, strategic investments in infrastructure and continued operational improvements could position the airline for sustained profitability in the future.
