Kenya Airways (KQ) has reported a historic after-tax profit of KShs 5.4 billion for the fiscal year 2024, marking its first profit in 11 years.
The airline also achieved a 10% increase in available seat kilometers (ASKs) and a 4% growth in passenger numbers, totalling 5.23 million.
Michael Joseph, chairman of Kenya Airways, highlighted the success of the airline's turnaround strategy that he said has been achieved through the much-touted "Project Kifaru".
Project Kifaru is Kenya Airways' recovery plan aimed at stabilizing and revitalizing operations post-COVID-19.
"In 2024, Kenya Airways reaffirmed progress in its turnaround strategy, Project Kifaru, resulting in the highest number of passengers that the airline has ever uplifted, the highest turnover, and highest profit attained in the history of the airline," Joseph said.
Project Kifaru focuses on operational efficiency, customer excellence, and employee development. Key initiatives launched in 2024 include a pyro-diesel plant, converting waste into fuel to cut costs and emissions; a water bottling plant expansion, reducing supplier dependence and generating revenue; and the Msafiri House Transformation, centralising operations to improve efficiency.
These efforts align with Kenya Airways’ strategy to enhance sustainability, cut operational expenses, and strengthen long-term profitability.
Acting Chief Financial Officer Mary Mwenga attributed the financial success to disciplined execution, said the KQ 2024 financial results reflect a year of disciplined execution and steady progress in the national carrier's turnaround plan.
"Total revenue grew by 6% to KShs188 billion, mainly driven by 4% higher passenger numbers and 25% growth in cargo tonnage," she said.
Group Managing Director and CEO Allan Kilavuka expressed gratitude for the support receive, saying: "We are grateful to the Government of Kenya and our investors for their unwavering support as we continue to build a stronger, more sustainable airline. Kenya Airways is ready for the future, connecting Africa to the world, and the world to Africa."
In 2022, President William Ruto committed to developing a turnaround strategy for Kenya Airways, aiming to restore profitability within two years.
The government subsequently invested KShs55.3 billion in the airline over two financial years—KShs26.6 billion in the previous financial year and KShs36.6 billion in the current year—to support restructuring efforts.
However, the Auditor-General's 2023/2024 report highlighted concerns regarding the absence of a clear loan recovery plan for these funds.
Kenya Airways was established on February 5, 1977, following the collapse of East African Airways, which was jointly owned by the governments of Kenya, Tanzania, and Uganda.
The inaugural KQ flight from Heathrow landed in Nairobi the following day, greeted by several thousand exuberant people.
The dissolution of East African Airways was precipitated by fraying relations among the partner countries, leading to the grounding of EAA planes by late January 1977.
The recent financial turnaround of Kenya Airways marks a significant milestone in its history, reflecting effective strategic initiatives and robust support from the government and investors.
KQ has endured a prolonged period of financial struggles, posting consecutive losses for over a decade.
The airline’s woes stemmed from a combination of heavy debt, operational inefficiencies, and external shocks such as the COVID-19 pandemic, which crippled global air travel.
In recent years, KQ relied heavily on government bailouts to stay afloat, with the Kenyan government injecting billions to support its restructuring.
Despite rising passenger numbers, the airline faced foreign exchange losses, high fuel costs, and legacy debts, making profitability elusive until its recent turnaround in 2024.