Kenya Airways FY’24 earnings rise up 124%

Kenya Airways, the national carrier of Kenya, has made a remarkable comeback in its 2024 full-year results, reporting a significant jump in earnings after navigating through a challenging period of loss-making. The Acting Chief Financial Officer, Mary Mwenga, joined CNBC Africa to shed light on the airline's successful turnaround and the key factors that contributed to its resurgence. In a candid interview, Mary detailed the strategic initiatives implemented by Kenya Airways in response to the disruptions caused by the COVID-19 pandemic. She highlighted the airline's transformation journey, which saw it evolve from a period of stagnation and survival to a phase of growth and profitability. During the tumultuous period of 2020-2022, when the aviation industry was severely impacted by the pandemic, Kenya Airways adopted a conservative approach focused on managing fixed costs and preserving cash reserves. However, as travel demand began to resurface in 2023, the airline swiftly pivoted towards rebuilding customer confidence, improving on-time performance, and charting a path towards growth. By 2024, Kenya Airways had successfully capitalized on the rebound in demand, leading to a 4% increase in passenger numbers and a 6% growth in total revenues. The addition of two freighters further boosted the airline's cargo segment, resulting in a remarkable 25% growth in cargo volume and a 20% surge in cargo revenue. The financial landscape also witnessed a positive shift, with Kenya Airways posting a profit of 5.4 billion shillings, a significant turnaround from the previous year's loss of 22.8 billion. Mary attributed this impressive performance to a 67% reduction in finance costs, driven by currency stability and innovative debt restructuring measures. The strategic partnership with the government, the airline's largest shareholder, played a pivotal role in renegotiating loans and reducing interest burdens, further contributing to the bottom line. As the aviation industry continues to recover from the impact of the pandemic, Kenya Airways' success story stands as a testament to resilience, adaptability, and strategic foresight. The airline's focus on customer satisfaction, operational efficiency, and financial prudence has not only restored its profitability but also positioned it for sustained growth in the future.