Kenya Airways achieves first half-year profit in 10 years

Kenya Airways has reported its first half-year profit in over a decade, with CEO Allan Kilavuka expressing hope of breaking even for the full year. The airline saw a turnaround in its fortunes, making a profit of 513 million Kenyan shillings ($4 million) from January to June, compared to a significant loss in the same period last year. Negotiations with a strategic equity investor are ongoing, aiming to further strengthen the company.

Once facing insolvency in 2018 due to substantial debt after an expansion drive, Kenya Airways has been working towards financial stability. The challenges of the COVID-19 pandemic, a weaker Kenyan shilling, and high interest rates have made it difficult to maintain profitability. However, with a 22% increase in revenue and a 10% rise in passenger numbers in the first half, the airline is making progress.

Kilavuka views the first-half results as a milestone, expressing confidence in achieving a break-even status for 2024. The strengthening of the Kenyan shilling and successful international bond sale have contributed to the positive financial outlook for Kenya Airways.

Source: Reuters