Kenya Airways : records an operating profit of KShs 10.5 billion in full year results

Press Release

Kenya Airways records an operang profit of KShs 10.5 billion in full year results

Nairobi, 26th March 2024 - Kenya Airways' ongoing recovery and turnaround iniaves have resulted in the airline recording an operang profit of Ksh 10.5 billion for the year ended December 31, 2023 compared to an operang loss of Ksh 5.6 billion in the prior year, represenng a 287% growth.

The Group's total revenue increased by 53% to close at Ksh 178 billion. This is mainly aributable to a 43% growth in passenger numbers against prior year and to only 2% below the pre-pandemic levels which is quite a commendable achievement.

Financial Performance highlights:

• o 287% growth in operang profit of Ksh 10.5 billion compared to an operang loss of Ksh 5.6 billion in the prior year.

• o The Group's total revenue increased by 53% to close at Ksh 178 billion.

• o Turnover was higher by 53% as a result of higher passenger numbers and increase in capacity deployed.

• o The Group reported a 37% increment in total operang costs despite a 44% increase in capacity deployed. This is mainly aributed to increased operaons as the Airline bounced back from the Covid-19 impact.

• o Direct operang costs increased 48% in line with increase in capacity.

• o Fleet costs were lower by 47.5% due to fleet raonalizaon.

• o Overheads increased by 22% due increase in employee costs as well as foreign currency losses caused by devaluaon of the Kenya Shilling against major world currencies, especially the US Dollar.

• o Loss aſter tax reduced by 41% to Ksh 23 billion from Ksh 38 billion.

Speaking at an investor briefing event, Kenya Airways Chairman, Michael Joseph said, "These figures highlight the airline's remarkable performance over the year and provide encouraging signs of connued recovery within the air transportaon sector. They also confirm the operaonal viability of the airline business and demonstrate that the management's ongoing efforts to restore profitability are yielding posive results."

Kenya Airways Group Managing Director and CEO, Allan Kilavuka, said, "During the year, the company's main focus remained on improving customer experience, operaonal excellence, and cash conservaon. These efforts resulted in the airline improving its On-Time Performance (OTP) to a high of 76% from an average low of 58% at the beginning of the year, ranking it as Africa's second most efficient airline. Addionally, the introducon of the Asante rewards loyalty program and the revamp of KQ's websiteaimed to beer appreciate and reward customer loyalty while improving user-friendliness and funconality."

He added: "The company also exploited opportunies of raising the much-needed revenues by ramping up its scheduled operaons as well as through passenger charters. Other iniaves undertaken by the management included partnerships with other airlines and cost containment measures."

Despite facing a Ksh 19 billion in foreign exchange losses on monetary items, loans, and leases, this year's performance marked a major milestone in the Group's turnaround strategy. The company managed to achieve a notable improvement, with a loss before tax of Ksh 22.7 billion, marking a significant stride from the Ksh 38.3 billion loss reported in the previous financial year of 2022.

Mr. Kilavuka emphasized that the airline's top priority going forward, is to connue building on the gains made in the airline's turnaround strategy, Project Kifaru. Along with this, in the near term, he said the focus is on compleng the capital restructuring plan whose main objecves are to reduce the Company's financial leverage and increase liquidity to ensure the company can operate at normalized levels.

"Our primary focus going ahead is dedicang ourselves to fostering innovaon, nurturing partnerships, and culvang a culture of excellence to ensure that Kenya Airways soars to new heights of success. Addionally, we will connue to engage government on recapitalizing the business to place Kenya Airways on a stronger foong and provide a stable base for long-term growth," said Mr Kilavuka.

The Government of Kenya in its capacity as a major investor in Kenya Airways has indicated their connued strong support for the Company's operaonal and capital structure opmizaon process and are closely involved throughout the transacon process and intend to remain major stakeholders in the Company over the long term.

Internaonal Air Transport Associaon (IATA) predicts full recovery of the aviaon industry from the Covid-19 crisis in 2024. This projected growth signifies a substanal rebound and resurgence for airlines, reflecng a renewed vigor and vitality within the industry.

-ENDS

About Kenya Airways

Kenya Airways, a member of the Sky Team Alliance, is a leading African airline flying to 45 desnaons worldwide, 37 of which are in Africa. In 2022 and 2023 the World Travel Awards recognized KQ as Africa's Leading Airline, Africa's Leading Airline Brand, Africa's Leading Airline - Business Class, and Africa's Leading Inflight Magazine (Msafiri). In 2023 KQ was awarded Best Airline Staff in Africa at the presgious Skytrax World Airline Awards. KQ's fleet comprises of wide-body Boeing aircraſt that includes its flagship B787 Dreamliner and narrow-body Embraer E190 aircraſt. The on-board service is renowned worldwide and the lie-flat business class seat on the wide body aircraſt is consistently voted among the world's top 10. Kenya Airways takes pride in being at the forefront of connecng Africa to the World and the World to Africa through its hub at the new ultra-modern Terminal 1A at the Jomo Kenyaa Internaonal Airport in Nairobi.

For more informaon go towww.kenya-airways.com or call our 24-hour Customer Services Desk: [phone], Twier: @KenyaAirways, Facebook: KenyaAirways, Instagram: OfficialKenyaAirways

For inquiries, please contact Kenya Airways Corporate Communicaons:

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