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Kenya Airways Monday reported a significant turnaround, posting its first half-year profit in more than a decade. The airline, one of Africa’s largest, announced that it achieved a profit of 513 million Kenyan shillings ($4 million) between January and June 2024, a sharp contrast to the 21.7 billion shilling loss it suffered in the same period last year.
The improvement comes on the back of rising passenger numbers and a favorable exchange rate. Revenue for the airline surged by 22% in the first half of the year, bolstered by a 10% increase in passenger traffic. This growth, coupled with a stronger Kenyan shilling, has given the struggling airline a much-needed boost.
Kenya Airways has been battling financial difficulties for years, sliding into insolvency in 2018 after an ambitious expansion plan left it saddled with substantial debt. The situation worsened during the COVID-19 pandemic, which saw international travel grind to a halt, making it even more challenging for the airline to service its debt. The airline has been reporting losses since 2013, and the recent profit marks a significant milestone in its recovery efforts.
Chief Executive Allan Kilavuka, while addressing a briefing, expressed cautious optimism about the future, stating that he is “reasonably confident” that Kenya Airways could break even by the end of 2024. He also hinted at ongoing negotiations with a strategic equity investor, though he did not provide further details.
The airline’s improved financial position has also been aided by the Kenyan government’s successful issuance of a new international bond earlier this year. The bond sale helped prevent a potential default on another bond due in June, leading to a rally in the Kenyan shilling against the U.S. dollar. This currency strength has helped the airline reduce its foreign exchange losses, a critical factor in its return to profitability.
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