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Kenya’s troubled national carrier Kenya Airways recorded an operating profit in 2023, the first in seven years. The figure of 10.5 billion Kenyan shillings (USD 80 million) for the year ended December 31 represents a sharp turnaround from an operating loss of 5.6 billion shillings in 2022, considered a significant milestone.
The airline, whose biggest shareholder is the Kenyan government, also said in a statement that its loss after tax had reduced to almost 23 billion shillings from more than 38 billion shillings the year before. Total revenue for the year surged by 53% to 178 billion shillings, which the airline attributed mainly to a 35% growth in passenger numbers to 5.04 million, according to its audited results statement.
Kenya Airways has been struggling under a mountain of debt and running losses for years despite numerous government bailouts, and like the aviation industry as a whole, it was hard hit by the COVID-19 pandemic. These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector, stated its Chairman Michael Joseph. They also confirm the operational viability of the airline business and demonstrate that the management’s ongoing efforts to restore profitability are yielding positive results.CEO Allan Kilavuka stated that the airline’s focus in the near term was on completing a capital restructuring plan whose main objectives are to reduce the company’s financial leverage and increase liquidity.
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The government owns a 48.9% stake in Kenya Airways, while Air France-KLM has 7.8%. The airline was founded in 1977 following the demise of East African Airways and now flies to 45 destinations across the globe, 37 of which are in Africa.
