Kenya Airways makes first operating profit since 2017
The airline is well on its way to recovery, CEO Allan Kilavuka says after 2018 insolvency due to expansion drive
26 March 2024 - 20:12
byDuncan Miriri
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Kenya Airways aircraft at the Jomo Kenyatta International Airport near Nairobi, Kenya. Picture: REUTERS/THOMAS MUKOYA
Nairobi — Kenya Airways swung to an operating profit of 10.53-billion shillings ($80.38m) last year, it said on Tuesday.
One of Africa’s three biggest carriers, Kenya Airways slid into insolvency in 2018 after an expansion drive left it with hundreds of millions of dollar in debt.
Last year’s operating profit was the airline’s first since 2017, it said, buoyed by a 53% increase in revenue to 178.5-billion shillings.
“It is an indication that we are well on our path to recovery,” CEO Allan Kilavuka told an investor briefing.
The revenue growth was underpinned by a 35% increase in passenger numbers, he said, adding that it will increase flights on popular routes such as Nairobi to London and secure new planes to take advantage of that momentum in demand.
The airline expects to receive an additional cargo freighter soon and it will receive another Boeing 737-800 passenger jet by the third quarter of this year to boost capacity, Kilavuka said.
Revenue from the airline’s cargo business was down for the year, in line with the global trend, he said.
Kenya Airways posted a pretax loss, as a steep weakening of the Kenyan shilling led to loan revaluation losses.
The shilling has started to strengthen against the dollar, meaning the outlook for this year is more positive, Kilavuka said.
“The FX situation is improving … We do expect this will work in our favour this year,” he said, adding that it would help the company to attain bottom line profitability.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Kenya Airways makes first operating profit since 2017
The airline is well on its way to recovery, CEO Allan Kilavuka says after 2018 insolvency due to expansion drive
Nairobi — Kenya Airways swung to an operating profit of 10.53-billion shillings ($80.38m) last year, it said on Tuesday.
One of Africa’s three biggest carriers, Kenya Airways slid into insolvency in 2018 after an expansion drive left it with hundreds of millions of dollar in debt.
Last year’s operating profit was the airline’s first since 2017, it said, buoyed by a 53% increase in revenue to 178.5-billion shillings.
“It is an indication that we are well on our path to recovery,” CEO Allan Kilavuka told an investor briefing.
The revenue growth was underpinned by a 35% increase in passenger numbers, he said, adding that it will increase flights on popular routes such as Nairobi to London and secure new planes to take advantage of that momentum in demand.
The airline expects to receive an additional cargo freighter soon and it will receive another Boeing 737-800 passenger jet by the third quarter of this year to boost capacity, Kilavuka said.
Revenue from the airline’s cargo business was down for the year, in line with the global trend, he said.
Kenya Airways posted a pretax loss, as a steep weakening of the Kenyan shilling led to loan revaluation losses.
The shilling has started to strengthen against the dollar, meaning the outlook for this year is more positive, Kilavuka said.
“The FX situation is improving … We do expect this will work in our favour this year,” he said, adding that it would help the company to attain bottom line profitability.
Reuters
Boeing CEO Dave Calhoun to step down in management shake-up amid safety crisis
JOHN LAMOLA: SAA continues its recovery and growth journey
Cathay posts highest annual profit since 2010
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
EU wants stronger antitrust remedies from Lufthansa
At least 50 injured in latest Boeing mid-flight incident
Honeywell heads to court over Bombardier engine pricing dispute
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.