National carrier Kenya Airways (KQ) has achieved its first full-year of profit after more than a decade of losses, buoyed by foreign-exchange gains.
The airline posted a record high net profit of Sh5.4 billion for 2024, a turnaround from a Sh22.6 billion loss in 2023—marking its first full-year of profits in 12 years.
“Our ratio earnings before interest tax, depreciation and amortisation was 20 percent in 2024 which is higher than the industry’s average of 17 percent and demonstrates the strong performance during the year,” Kenya Airways chief executive officer Allan Kilavuka told a briefing on Tuesday.
A key driver of KQ’s improved performance in 2024 was foreign-exchange gains of Sh10.55 billion shillings, compared to a loss of Sh15.04 billion in 2023, as the local currency strengthened more than 20 percent against the dollar last year.
The airline’s operating profit for the year rose to Sh16.62 billion from Sh10.53 billion in 2023, assisted by higher revenues and lower costs.
KQ’s total revenue rose by six percent to hit Sh188.4 billion from Sh178.4 billion a year prior while passenger numbers rose by four percent during the year to 5.23 million, a historical high, from 5.04 million passengers in 2023.
Cargo volumes meanwhile rose faster than uplifted passengers at 25 percent, reaching 70,776 tonnes from 56,576 a year prior.
During the year, Kenya Airways increased its lift of cargo through the addition of two aircraft to its fleet while expanding its passenger operations to three new destinations- Mogadishu, Maputo, and Eldoret.
A stronger Kenya shilling also helped KQ to its first profit in a dozen years, as it saw savings of Sh1.2 billion on its foreign exchange-denominated liabilities.
Kenya Airways is however in the hole from a working capital perspective as it remains in a negative equity position from its wretched loss-run in the last 11 years.
The airline remains set on acquiring a new equity investor in 2025 to help it achieve a significant cash injection to stabilize its recent performance and ensure the long-term stability of the carrier.
The search for a new strategic investor has, however, stalled as KQ’s principal shareholder- the government of Kenya weighs options to steady the turbulence faced by the national flag carrier.
“We look into the future with a great amount of anticipation. We have produced a profit but what we really need is a huge capital injection to improve the airline, including flying to new destinations and improving passenger experiences,” KQ board chairman Michael Joseph said.
KQ has identified other headwinds to its business that require mending, including the deterioration of its on-time performance in 2024 and above-normal flight cancellations.
