Kenya Airways posted its first half-year profit in over ten years on Monday, driven by increasing passenger numbers. The airline expressed optimism about the possibility of reaching break-even for the entire year.
During the period from January to June, the airline achieved a profit of 513 million Kenyan shillings ($4 million), effectively reversing the 21.7-billion-shilling loss incurred in the first half of 2023.
In a briefing, Chief Executive Allan Kilavuka said that the company was in the process of finalising discussions with a strategic equity investor, although specific details were not shared.
Kenya Airways, one of Africa’s three largest airlines, faced insolvency in 2018 after amassing hundreds of millions of dollars in debt following an ambitious expansion effort.
International travel suffered a steep decline due to the COVID-19 pandemic, along with a significant devaluation of the Kenyan shilling and increased interest rates, making it harder to repay the debt. The airline has been experiencing financial losses since 2013.
Kilavuka expressed that the first-half results marked a significant achievement, and he expressed “reasonable confidence” in Kenya Airways breaking even for the entire year of 2024. He noted that the airline’s revenue increased by 22% in the first half, attributed to a 10% growth in the number of passengers.
The government successfully sold a new international bond earlier in the year to avoid defaulting on an existing bond due in June, strengthening the Kenyan shilling. This, in turn, had a positive impact by reducing foreign exchange losses.