Kenya Airways Announces 2023 Results: KSh 10.5 Billion Operating Profit

Kenya Airways (KQ) has announced a significant improvement in its financial performance for 2023.

According to the full-year results released on March 26, 2024, the airline recorded an operating profit of KSh 10.5 billion, marking a substantial turnaround from previous years.

Key Highlights from KQ’s 2023 Results:

• Operating profit growth: 287% (Ksh 10.5 billion) compared to an operating loss of Ksh 5.6 billion the prior year.
• Group’s total revenue increase: 53% (Ksh 178 billion).
• Turnover growth: 53% driven by higher passenger numbers and increased capacity.
• Total operating cost increase: 37% despite a 44% rise in deployed capacity. This mainly reflects increased operational activity as Kenya Airways emerges from the COVID-19 pandemic’s impact.
• Direct operating cost increase: 48%, aligning with the rise in capacity.
• Fleet cost decrease: 47.5% due to fleet rationalization efforts.
• Overhead cost increase: 22% due to a combination of employee cost fluctuations and foreign currency losses stemming from the Kenyan Shilling’s devaluation against major currencies, particularly the US Dollar.
• Loss after tax reduction: 41% (Ksh 23 billion) compared to the Ksh 38 billion loss reported in the previous year.

CEO Statement:

Kenya Airways Group Managing Director and CEO, Allan Kilavuka, elaborated on the driving forces behind the airline’s financial improvement:

“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% from an average low of 58% at the beginning of the year, ranking it as Africa’s second most efficient airline.

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.”