Kenya Airways Loses Ksh80 Million in One Day

The Kenya Airways Chief Executive Officer (CEO) Allan Kilavuka counts a loss of Ksh80 million due to the one-day anti-Adani strike that transpired at Jomo Kenyatta International Airport on September 11, 2024.

He said this in a media interview on September 23, 2024.  “Strikes are very bad for us because they are destructive and inconvenient to our customers and very costly,” he stated.

“For example, the strike that happened the other time, if you look at the cost of time, rebooking, and the cost of paying compensation is very significant. We estimate about Ksh. 80 million losses in that one-day disruption,” he added.

Kenya Airways 2022 Operating Profit Report 

On 29^th August 2023, Kenya Airways reported through a press release an operating profit of Ksh. 998 million for the first time in 6 years.

The turnaround strategy yielded various operating profits and increased revenue within the period.

The press release recorded a 120% improvement in Operating Profit from the operating loss of Ksh 5 billion reported in a similar period in the previous year 2022.

In addition, the group’s revenue grew by 56% to Kshs 75 billion, Passenger numbers also increased by 43% to 2.3 million with an increase of 56% in Available Seat Kilometers (ASKs).

Also Read: Kenya Airways Unveils Special Hub for Government Officials

At the same time, the operating costs increased by 40% due to the increase in activity, however, gross profit increased by 131%. Earnings before interest, tax, and depreciation (EBITDAR) grew by 7% points as well.

Speaking at the investor briefing event then, in the press release, Kenya Airways Chairman Michael Joseph cited the reason for the huge profits and revenue increase that was experienced.

“These exceptional figures underscore the airline’s outstanding performance during the period and offer encouraging indications of ongoing recovery and turnaround initiatives that have been put in place by management to return the airline to profitability are bearing fruit,” the statement read in part.

Allan Kilavuka on 2022 Operating Profits

Kilavuka also highlighted what saw the increase in the operating profits during the period.

“These results confirm the operational viability of the airline. We have enhanced our customer experience at different touchpoints, the reliability and availability of our aircraft have significantly improved, and Our On-Time Performance (OTP) has gone up from a low 58% at the start of the year to 77% at the end of June with a target of being above 80%,” he explained.

Also Read: JKIA: Kenya Airways Issues Statement as Airport Workers Strike Grounds Operations

The current Anti-Adan strike might jeopardize the set legacy and in turn, pull back the Kenya Airways determined efforts to keep on the upward trend, to increase revenue and operating profits.

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