Forex gains lift Kenya Airways from more than a decade of losses

Zawya

27-03-2025

National carrier Kenya Airways has posted its first full year profit after more than a decade of losses, buoyed by foreign exchange gains.
The airline posted an all-time high net profit of Ksh5.4 billion ($41.7 million) for 2024, a turnaround from a Ksh22.6 billion ($205.4 million) loss in 2023— its first full year profit in 12 years.'Our ratio earnings before interest tax, depreciation and amortisation was 20 percent in 2024, which is higher than the industry's average of 17 percent and demonstrates the strong performance during the year,' Kenya Airways chief executive officer Allan Kilavuka told a briefing on Tuesday.'This is the highest profit that this company has reported in its history,' he added.
A key driver of KQ's improved performance in 2024 was foreign exchange gains of Ksh10.55 billion ($81.5 million), compared to a loss of Ksh15.04 billion ($116.1 million) in 2023, as the local currency strengthened by more than 20 percent against the dollar last year.
The stronger Kenyan shilling also helped KQ save Ksh1.2 billion ($9.3 million) on its foreign currency denominated liabilities.
The airline's operating profit for the year rose to Ksh16.62 billion ($128.3 million) from Ksh10.53 billion ($81.3 million) in 2023, helped by higher revenues and lower costs.
Passenger, cargo numbersKQ's total revenue rose by six percent to hit Ksh188.4 billion ($1.5 billion) from Ksh178.4 billion ($1.4 billion) a year prior, while passenger numbers rose four percent during the year to 5.23 million, a historical high, from 5.04 million passengers in 2023.
Cargo volumes, meanwhile, rose faster than passenger numbers at 25 percent to 70,776 tonnes from 56,576 tonnes a year earlier.
During the year, Kenya Airways increased its cargo lift with an addition of two aircraft to its fleet, while expanding its passenger operations to three new destinations- Mogadishu, Maputo and Eldoret.
The airline remains committed to attracting a new equity investor in 2025 to provide a significant cash injection to stabilise its recent performance and ensure the long-term stability of the carrier.
However, the search for a new strategic investor has stalled as KQ's majority shareholder—the government of Kenya —weighs options to calm the turbulence the national carrier faces.'We look into the future with a great amount of anticipation. We have produced a profit but what we really need is a huge capital injection to improve the airline, including flying to new destinations and improving passenger experiences,' KQ board chairman Michael Joseph said.
KQ has identified other headwinds to its business that need to be addressed, including the deterioration of its on-time performance in 2024 and higher than normal flight cancellations.→ [e-mail]