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.