Kenya Airways, once struggling, has steadily regained its footing and made a notable return to the Nairobi Securities Exchange (NSE) five years after its suspension. The suspension was prompted by the government’s plan to repurchase privately held shares and renationalize the airline.
The NSE reinstated Kenya Airways shares based on its improved financial performance and the withdrawal of the renationalization bill, which was initially aimed at revitalizing the airline. From 2013 to 2022, the airline faced significant financial difficulties, with losses totaling $1.7 billion.
Partially owned by the Kenyan government, which holds 48.9% of its shares, Kenya Airways has relied on government support to cover loans and operational expenses. However, CEO Allan Kilavuka noted that the company did not receive government funding in 2023 due to the government’s fiscal challenges, which continued into 2024, affecting other entities such as JKIA.
In response, Kenya Airways sought funding from equity investors to restructure its operations. This has involved stringent financial discipline, including cost-cutting measures and debt-to-equity swaps. Kilavuka has assured investors that the airline expects to break even by the end of 2023 and achieve profitability in the subsequent year.
In 2024, Kenya Airways reported a profit of $3.9 million for the first half of the year, marking a 102% year-on-year increase, with operating losses reduced by over 50%. The airline also saw a significant rise in flight traffic, carrying 5 million passengers in 2023 and maintaining an average of 8,000 passengers daily in 2024.
Looking ahead, Kilavuka projects that Kenya Airways will post its first full-year profit for the 2024/2025 financial year, solidifying its recovery and marking a significant milestone in the airline’s resurgence.
