By Enyichukwu Enemanna
For the first time in over a decade, Kenya Airways has reported a profit before tax, a milestone largely attributed to foreign exchange gains.
“I think we can be proud that the national carrier has produced a profit,” Michael Joseph, chairman of the airline’s board of directors, said during a press briefing on Tuesday.
As one of Africa’s biggest airlines, Kenya Airways had been in the red since 2013.
Its profit before tax stood at 5.53 billion shillings ($42.82 million) in 2024, compared to a loss of 22.86 billion shillings recorded in 2023.
A key factor in the airline’s improved performance was foreign exchange gains of 10.55 billion shillings, in contrast to a loss of 15.04 billion shillings in 2023, as the local currency strengthened by more than 20% against the dollar last year.
Additionally, the company’s operating profit rose to 16.62 billion shillings in 2024, up from 10.53 billion shillings in 2023, driven by higher revenues and lower costs.
Kenya Airways fell into insolvency in 2018 after an expansion drive left it burdened with hundreds of millions of dollars in debt.
The collapse of international travel during the COVID-19 pandemic, coupled with a sharp weakening of the shilling between 2022 and 2023 and rising interest rates, further complicated its debt servicing efforts.
The airline has been reliant on state financial support, with the government paying off a $150 million loan in January that Kenya Airways had received from local commercial banks.
Chairman Joseph expressed optimism, stating that improvements at the airport and an expanded fleet would further enhance the airline’s performance.
