Kenya Airways announced Monday it achieved its first half-year profit in more than a decade, reporting a net income of 513 million Kenyan shillings ($4 million) for January through June. This marks a significant turnaround from the 21.7 billion shilling loss recorded in the same period last year.
The airline attributed the positive results to increased passenger traffic and expressed optimism about breaking even for the full year. CEO Allan Kilavuka revealed that the company is nearing the completion of negotiations with a strategic equity investor but did not provide further details.
Once a leading airline in Africa, Kenya Airways entered insolvency in 2018 due to substantial debt from an expansion initiative. The financial strain was exacerbated by the COVID-19 pandemic, a weakening Kenyan shilling, and rising interest rates. The airline has faced financial difficulties since 2013.
Kilavuka described the first-half results as a milestone and expressed “reasonable confidence” in achieving full-year profitability for 2024.
The airline reported a 22% increase in revenue and a 10% rise in passenger numbers. Additionally, the strengthening of the Kenyan shilling, bolstered by a successful international bond sale, contributed to a reduction in foreign exchange losses.
