https://en.sputniknews.africa/20240820/kenya-airways-breaks-over-decade-long-losses-streak-with-first-half-year-profit-of-almost-4-million-1067937488.html
Kenya Airways Breaks Over Decade-Long Losses Streak With First Half-Year Profit of Almost $4 Million
Kenya Airways Breaks Over Decade-Long Losses Streak With First Half-Year Profit of Almost $4 Million
Sputnik Africa
Kenya Airways, one of Africa's largest airlines, has been struggling financially since 2013 and slipped into insolvency in 2018. The collapse of international... 20.08.2024, Sputnik Africa
2024-08-20T18:30+0200
2024-08-20T18:30+0200
2024-08-20T18:56+0200
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Kenya Airways reported its first half-year profit in over ten years, expressing optimism that it would break even for the entire year, the company stated on Monday.The airline attributed its turnaround to a surge in passenger numbers, a welcome change after the crippling impact of the COVID-19 pandemic, and a stronger Kenyan shilling following a rally earlier in the year.According to the statement, the company's first half-year profit of 513 million Kenyan shillings (approximately $4 million) from January to June this year can be considered a significant milestone. In terms of passenger numbers, the company recorded a 10% increase to a total of 2.54 million during the period.Moreover, the airline's total revenue increased by 22% to Kshs 91 billion ($706.5 million), driven by higher passenger numbers. Even though operating costs rose by 22% due to capacity growth, overheads were reduced by 22%, the company stated.The airline's overall profit after tax increased by 102% during the accounting period.Kenya Airways CEO Allan Kilavuka remained positive about the airline's ability to achieve sustainable growth and financial stability.Furthermore, Kilavuka expressed the airline's commitment to "operational excellence, customer satisfaction, and innovation," which is driving the quest for a "stronger and more resilient airline."The pandemic's devastating effect on international travel, coupled with a sharp depreciation of the Kenyan shilling and rising interest rates, had pushed the airline to the brink of insolvency.
https://en.sputniknews.africa/20240430/steering-away-from-kinshasa-kenya-airways-to-halt-flights-to-drc-due-to-detention-of-its-personnel--1066301001.html
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economy, kenya, east africa, airlines, plane, bankruptcy, investment, finance, covid-19, business
Kenya Airways Breaks Over Decade-Long Losses Streak With First Half-Year Profit of Almost $4 Million
18:30 20.08.2024 (Updated: 18:56 20.08.2024) Ekaterina Shilova
Writer / Editor
Kenya Airways, one of Africa's largest airlines, has been struggling financially since 2013 and slipped into insolvency in 2018. The collapse of international travel during the COVID-19 pandemic, coupled with currency depreciation and rising interest rates, made debt servicing even more challenging.
Kenya Airways reported its first half-year profit in over ten years, expressing optimism that it would break even for the entire year, the company
stated on Monday.The airline attributed its turnaround to a surge in passenger numbers, a welcome change after the crippling impact of the COVID-19 pandemic, and a stronger Kenyan shilling following a rally earlier in the year.
According to the statement, the company's first half-year profit of 513 million Kenyan shillings (approximately $4 million) from January to June this year can be considered a significant milestone.
"The impressive performance reaffirms the operational viability of our business and underscores the effectiveness of the collective efforts by our board, management, and staff," the airline's head, Michael Joseph, said in a press release. "This achievement underscores the strength and resilience of Kenya Airways as we move forward on our path to sustained profitability."
In terms of passenger numbers, the company recorded a 10% increase to a total of 2.54 million during the period.
Moreover, the airline's total revenue increased by 22% to Kshs 91 billion ($706.5 million), driven by higher passenger numbers. Even though operating costs rose by 22% due to capacity growth, overheads were reduced by 22%, the company stated.
The airline's overall profit after tax increased by 102% during the accounting period.
Kenya Airways CEO Allan Kilavuka remained positive about the airline's ability to achieve sustainable growth and financial stability.
"Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes. We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth. This performance positions us in good stead to navigate the challenges of the aviation industry and prepare for future growth," he said.
Furthermore, Kilavuka expressed the airline's commitment to "operational excellence, customer satisfaction, and innovation," which is driving the quest for a
"stronger and more resilient airline."
The pandemic's devastating effect on
international travel, coupled with a sharp depreciation of the Kenyan shilling and rising interest rates, had pushed the airline to the brink of insolvency.
