Wed. Oct 30th, 2024

Kenya Airways reported its first half-year profit in over a decade on Monday, with a profit after tax of 513 million Kenyan shillings ($4 million) for January to June, reversing a 21.7 billion shilling loss from the same period last year.

The airline credited increased passenger numbers for the turnaround and is optimistic about breaking even for the full year.

CEO Allan Kilavuka announced that the company is close to finalizing negotiations with a strategic equity investor but withheld further details.

Once one of Africa’s top three airlines, Kenya Airways fell into insolvency in 2018 due to heavy debt from an expansion drive.

The COVID-19 pandemic, a weakening Kenyan shilling, and higher interest rates worsened its financial situation. The airline has been struggling financially since 2013.

Kilavuka called the first-half results a milestone and expressed “reasonable confidence” in achieving full-year profitability for 2024.

The airline saw a 22% increase in revenue and a 10% rise in passenger numbers. Additionally, the strengthening Kenyan shilling, supported by a successful international bond sale, helped reduce foreign exchange losses.

By Joy

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