KQ bounces back to profitability after 10 years

[RV Heavy Hitter!]

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National Carrier Kenya Airways has bounced back to profitability after ten years posting Sh513 million in net profit helped by reduced exposures from foreign currency fluctuations and the restructuring of its loans by the state.

This is a rebound of up 102 per cent from the Sh21.7 billion loss that the airline posted in a similar period last year.

In the six months to June 30, 2024, the airline's total income rose by 22 per cent year-over-year to Sh91.49 billion, on renewed passenger demand and operational efficiency.

Total operating costs decreased by 22 per cent to Sh90.20 billion, contributing to a 30 per cent increase in operating profit, which reached Sh1.30 billion.

https://www.the-star.co.ke/news/2024-08-19-kq-bounces-back-to-profitability-after-10-years/?fbclid=IwY2xjawExSZ9leHRuA2FlbQIxMQABHfPnnLJMSNzpytZJX92YBvtvR-w7aa-fLhtFVvoyvVLX9Ye5bU0xtjxl3Q_aem_QQzJ_5eIzVTZAgS5CWiTRQ

[Nefertiti]

Good. Are they getting GoK subsidies? I mean like most national airlines especially Gulf competitors

[RV Pundit]

It huge relief to all taxpayers. Ruto has done a great job.

[Nowayhaha]

Upuzi …….same way kenyas economy is magnificent ….. dont believe the hype…

[Nefertiti]

It huge relief to all taxpayers. Ruto has done a great job.

Yes. I think GoK absorbed the bulk of the loans for Project Mawingu. By paying off the banks.

[Nefertiti]

Upuzi …….same way kenyas economy is magnificent ….. dont believe the hype…

Meaning what? The airline could barely pay off its workers a few years ago. There were major internal deficiencies - especially Dreamliner investment that failed to break even. National economy manenos are not the issue  here. You are conflating unrelated items.

[hk]

Take out the currency effects and the earnings would have been negative.