Kenya Airways planes are seen through a window at the Jomo Kenyatta International Airport in Nairobi, Kenya, August 1, 2020. REUTERS/Njeri Mwangi/File Photo Purchase Licensing Rights.
Kenya Airways, a beacon in the African aviation landscape, has reported a stunning turnaround. On a seemingly ordinary Tuesday, the airline, under its stock identifier KQNA.NR, revealed an impressive pretax profit for the last fiscal year, marking a victory lap after more than a decade of persistent losses. Such a revelation strikes a chord, doesn’t it?
Historically, Kenya Airways had been wrestling with financial woes dating back to 2013. Yet, the latest financial results illuminate a different path. The airline achieved a pretax profit of 5.53 billion shillings, translating to approximately $42.82 million in 2024. In stark contrast, it had suffered a loss of 22.86 billion shillings the prior year. This turnaround is notable, but what catalyzed such a dramatic shift?
Michael Joseph, the ever-optimistic chairman of the airline’s board of directors, proudly shared, “I think we can be proud that the national carrier has produced a profit.” His remark encapsulates the spirited resilience that Kenya Airways embodies. The airline’s improved performance in 2024 was primarily fueled by significant foreign-exchange gains, tallying to 10.55 billion shillings. Compare this with the harsh loss of 15.04 billion shillings faced in 2023, largely driven by a robust recovery of the local currency, netting a 20% appreciation against the US dollar.
“There is no success without struggle, and the journey of a thousand miles begins with a single step,” goes an old saying. In Kenya Airways’ case, it was a long journey with numerous hurdles.
Operating profit, another litmus test of financial health, rose to 16.62 billion shillings from 10.53 billion shillings in the preceding year. This was aided by an upswing in revenue combined with curtailed operational costs. Nonetheless, peering into the rearview mirror, it wasn’t always so rosy.
Back in 2018, Kenya Airways found itself entangled in insolvency, a consequence of an ambitious expansion drive that saddled it with hundreds of millions in debt. Even more challenging was the onset of the COVID-19 pandemic, which saw a drastic dip in global travel. Not to mention, the Kenyan shilling took a nosedive in 2022-2023, further complicating debt servicing with rising interest rates. During these turbulent times, what gave them hope?
Financial lifelines came in the form of state aid. The Kenyan government played the role of the steadfast ally, settling a hefty loan of $150 million in January that the airline had amassed from local commercial banks. Yet, the story doesn’t end here.
Today, as Kenya’s flagship carrier sets its eyes on the horizon, challenges persist. There’s a looming necessity to modernize Jomo Kenyatta International Airport in Nairobi, which is reportedly functioning beyond its intended capacity. Michael Joseph optimistically spoke of future endeavors, suggesting, “Improvements at the airport and more aircraft in the airline’s fleet would further boost our performance.”
The financial affairs of an airline reverberate far beyond boardrooms. They are a reflection of economic health, strategic decisions, and sometimes, sheer perseverance. For Kenya Airways, reinvigorated by its newfound profitability, it marks a pivotal moment, sowing seeds for a future where financial stability propels it into new skies.
As we ponder the arc of this narrative, take a moment to reflect on resilience, perseverance, and the catalysts that transform dreams into reality. Kenya Airways’ journey isn’t just about numbers; it’s a testament to vision, tenacity, and the unwavering human spirit. After all, isn’t that what we cherish in any success story?
Edit by Ali Musa, Axadle Times International – Monitoring
