Kenya Airways is focusing on completing a capital restructuring, to reduce leverage, and increasing liquidity after it turned in a full-year net profit of KShs5.4 billion ($41.7 million).
Chief executive Allan Kilavuka says the company is still seeking a strategic investor in order to ensure long-term sustainability.
“Our turnaround strategy is yielding positive results,” he states, insisting that the airline is an “attractive investment” for a strategic partner.
Kenya Airways says it will invest to expand its fleet – it introduced two freighters last year – and modernise the cabins of its passenger aircraft.
It says the financial performance reflects a “remarkable” improvement from the previous year’s loss of KShs22.6 billion.
The company attributes the achievement to its ‘Project Kifaru’ strategy, which has helped lift revenues by 6% to KShs188.5 billion and generate a near-60% hike in operating profit to KShs16.6 billion.
Kenya Airways says the opening of services to a number of destinations – including Mogadishu, Eldoret and Maputo – as well as increasing frequencies has contributed to the revenue growth.
“Other initiatives undertaken by the management included partnerships with other airlines as well as cost-containment measures,” it says.
Kenya Airways raised capacity by 10% during the year and passenger numbers were up 4%, while yield remained “consistent”, the carrier says.
Chair Michael Joseph says the results demonstrate the airline’s “strong operational viability and resilience”.
Kenya Airways has set a target to double passenger numbers and revenues by 2030, and increase the proportion of cargo activity to 20% of its business.
