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SkyTeam member Kenya Airways is looking to conclude its capital restructuring and secure a strategic equity investment, after posting a KES513 million ($3.9 million) interim net profit for the first six months of 2024.
“This is the first time Kenya Airways is reporting a profit after tax since 2013,” Kenya Airways said at the release of its interim results on Aug. 19.
Over the six months to June 30, Kenya Airways added 16% capacity, which was met with a 14% year-over-year traffic increase. Passenger numbers in the first half (H1) rose 10% year-over-year to 2.54 million, generating 22% higher revenues at KES91 billion. Operating costs also widened by 22%, but overheads fell by 22%, resulting in a KES513 million H1 net profit. This marks a significant turnaround from H1 2023’s KES21.7 billion interim net loss.
Kenya Airways CEO Allan Kilavuka said the results are a “clear indication” that the first stage of the airline’s “Project Kifaru” turnaround plan—which is now 95% complete—is on track.
Kilavuka is now focused on completing a capital restructuring plan to reduce the airline’s financial leverage and improve liquidity. He noted that the second stage of Project Kifaru will involve a strategic equity investment.
In 2021, Kenya Airways and South African Airways (SAA) announced plans to form a strategic partnership, including ambitions to ultimately form a pan-African airline group. However, this fell by the wayside because both carriers needed space to focus on their own restructuring.
Nairobi-based Kenya Airways—which flies to 45 destinations, 37 of which are in Africa—is aiming to breakeven in fiscal 2024.
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