After more than ten years of consistent financial losses, Kenya Airways has reported a pretax profit, largely due to favorable foreign exchange movements. The airline announced a profit of 5.53 billion Kenyan shillings (approximately $42.82 million) for the 2024 financial year, a dramatic turnaround from the 22.86 billion shillings loss recorded in 2023.
The airline, one of Africa’s largest carriers, had been unprofitable since 2013. Speaking during a press briefing, Board Chairman Michael Joseph expressed satisfaction with the company’s performance, calling the profit a moment of pride for the national carrier.
A key factor behind the improved financial performance was a foreign exchange gain of 10.55 billion shillings, contrasting sharply with a 15.04 billion shillings loss in 2023. This gain was driven by the Kenyan shilling strengthening by over 20% against the US dollar during 2024.
Kenya Airways also saw its operating profit climb to 16.62 billion shillings, up from 10.53 billion shillings in the previous year, thanks to increased revenues and reduced operating costs.
Previously, the airline became insolvent in 2018 due to an aggressive expansion strategy that led to heavy debt. The situation worsened during the COVID-19 pandemic, with international travel declining and the shilling weakening between 2022 and 2023, while interest rates rose.
The airline has relied heavily on government financial support to stay afloat. In January, the government cleared a $150 million loan that Kenya Airways had borrowed from local banks.
Chairman Joseph also highlighted the urgent need to upgrade Jomo Kenyatta International Airport (JKIA) in Nairobi, which is currently over capacity. He added that modernizing the airport and expanding the airline’s fleet would help sustain and improve future performance.
(Exchange rate: $1 = 129.15 KES)
