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Kenya Airways on Monday reported Sh513 million in net earnings in the first half of the year, the first in 11 years up from a loss of Sh168.2 million same period last year.
The national carrier which trades internationally as KQ attributed the growth to its strategic turnaround plan, Project Kifaru, which focuses on customer obsession, operational excellence, financial discipline, innovation, and sustainability.
The results, which have become a national debate after a streak of heavy losses running in billions of shillings for over a decade did not come easily, according to the airlines management.
"Our financial results are a clear indication that our strategic initiatives are delivering the desired outcomes,''KQ boss Allan Kilavuka said.
"We have focused on strengthening our core operations, enhancing our customer service, and exploring new avenues for growth."
In an exclusive interview with the Star early this year, Kilavuka forecast the airline to post a net profit by end of 2024, saying they have put in place operational efficiency including fleet and route optimisation and improvement in On Time Performance.
In the past three years, KQ has effected network review in a routine informed by the return to air travel as the aviation industry recovers from the Covid-19 pandemic.
Last year, the Kenya’s flag carrier announced plans to retire its Embraer and Bombardier fleet in favor of Boeing aircraft as it looks to incorporate mono fleeting.
This cost management strategy was implemented in line with the airline’s long-term fleet and route development plans.
So far, it has phased out its Embraer regional Jets and Bombardier aircraft to increase capacity and meet passenger demand.
It is progressively moving towards becoming an all-Boeing operator, which the board has since approved.
Looking at the airline’s last annual report, the group operated a fleet of 39 owned and leased aircraft.
The fleet consisted of nine Boeing 787-8s, eight B737-800s, 13 ERJs, two B737-300Fs, and seven DHC 8-400s. This has since been reviewed to ensure that it was fit to serve the network growth.
In a past interview, Kilavuka said they the airline was focusing on customer excellence, putting on the entire customer journey right from booking to the next time customers think of traveling.
A few key examples include a revamped website that makes booking a breeze and a customer queries escalation system.
A redone meal service on board has been tweaked to incorporate local flavours whilst still maintaining internationally accepted gourmet standards.
"To top it all, we now have our very own frequent flyer system called Asante Rewards which is a unique and superior loyalty program that focuses on our specific customer needs,'' he said.
These and other strategies saw the air line grow passenger growth of 10 per cent 2.54 million.
The airline’s capacity, measured in available Seat Kilometers (ASKs), increased by 16 per cent to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14 per cent.
The airline’s total revenue grew by 22 per cent to Sh91 billion, driven by higher passenger numbers.
Despite the expansion, operating costs rose by 22 per cent, aligning with the growth in capacity. However, overheads were reduced by 22per cent, reflecting Kenya Airways' continued commitment to cost management and operational efficiency.