Kenya Airways, the national carrier of Kenya, has reported a significant turnaround in its financial performance, marking its first operating profit in seven years. The airline disclosed an operating profit of 10.5 billion Kenyan shillings (approximately $80 million) for the fiscal year ending December 31, 2023. This achievement represents a notable shift from the previous year’s operating loss of 5.6 billion shillings in 2022, signaling a positive trajectory for the company.

Chairman Michael Joseph hailed this development as a “significant milestone” for Kenya Airways, emphasizing the importance of the operational profit in the airline’s long-term sustainability. The reduction of operating losses and improved financial performance underscore the effectiveness of the strategies implemented by the management amidst challenging circumstances.

Despite being majority-owned by the Kenyan government, Kenya Airways has faced financial struggles and accumulated substantial debt over the years. Despite receiving government bailouts, the airline continued to experience losses, exacerbated by the adverse impact of the Covid-19 pandemic on the aviation industry globally.

The airline’s audited results statement revealed a remarkable surge in total revenue, which escalated by 53 percent to reach 178 billion shillings. This growth was primarily attributed to a notable increase in passenger numbers, which expanded by 35 percent to 5.04 million during the fiscal year. The uptick in passenger traffic reflects signs of recovery within the air transportation sector, indicating a gradual return to pre-pandemic levels of activity.

Kenya Airways CEO Allan Kilavuka outlined the company’s focus on executing a comprehensive capital restructuring plan aimed at reducing financial leverage and enhancing liquidity in the near term. By addressing these financial challenges, the airline aims to strengthen its financial position and support its long-term sustainability objectives.

With the Kenyan government holding a significant stake of 48.9 percent in Kenya Airways and Air France-KLM owning 7.8 percent, the airline operates as a key player in the African aviation landscape. Established in 1977 following the demise of East African Airways, Kenya Airways has evolved into a major carrier, serving 45 destinations worldwide, with 37 of them located within Africa.