National Carrier Kenya Airways (KQ) has posted a Ksh10.5 billion operating profit for the financial year ended December 2023.
This is a 287 per cent jump compared to the Ksh5.6 billion operating loss recorded in a similar period a year prior, becoming the first operating profit the airline has recorded in seven years.
KQ’s total revenue for the full-year period to 31st December 2023 rose 53 per cent to Ksh178 billion buoyed by a 43 per cent growth in passenger numbers.
The group’s operating cost recorded a 37 per cent jump driven by increased operations as the airline bounced back from the impact of COVID-19.
During the review period, loss after tax reduced 41 per cent to Ksh23 billion from Ksh 38 billion in a similar period the previous year.
“These figures highlight the airline’s remarkable performance over the year and provide encouraging signs of continued recovery within the air transportation sector. They also confirm the operational viability of the airline business and demonstrate that the management’s ongoing efforts to restore profitability are yielding positive results,” said KQ’s Chairman, Michael Joseph.
Overheads during the review period rose 22 per cent on an increase in employee costs and foreign currency losses due to the devaluation of the Kenya Shilling against the US dollar.
“During the year, the company’s main focus remained on improving customer experience, operational excellence, and cash conservation. These efforts resulted in the airline improving its On-Time Performance (OTP) to a high of 76 per cent from an average low of 58 per cent at the beginning of the year, ranking it as Africa’s second most efficient airline,” said KQ Group Managing Director and CEO, Allan Kilavuka.
“Additionally, the introduction of the Asante rewards loyalty program and the revamp of KQ’s website aimed to better appreciate and reward customer loyalty while improving user-friendliness and functionality,” he added.
“The company also exploited opportunities of raising the much-needed revenues by ramping up its scheduled operations as well as through passenger charters. Other initiatives undertaken by the management included partnerships with other airlines and cost containment measures.”