Table of Contents
Key Points
- KQ adds a Boeing 737-800 via lease from Dubai Aerospace Enterprise, boosting capacity to 35 aircraft amid rising regional and international travel demand.
- CEO Allan Kilavuka highlights the addition as part of Project Kifaru 2, aimed at restoring profitability and enhancing operational resilience.
- KQ posts a Ksh513 million ($4 million) net profit for H1 2024, marking its first profit after tax since 2013.
Kenya Airways Plc (KQ), one of Africa's largest airlines, led by South African-born Kenyan businessman Michael Joseph, has added a Boeing 737-800 to its fleet through a lease agreement with Dubai Aerospace Enterprise (DAE). Thanks to the latest move, the airline now operates 35 aircraft, boosting its capacity and efficiency as it competes in the African aviation market.
The 170-seat aircraft is expected to boost KQ’s network reach, offering passengers greater flexibility as demand for regional and international travel surges. The acquisition also aligns with the airline’s long-term strategy to modernize its fleet and improve overall connectivity.
Turnaround strategy gains momentum
KQ CEO Allan Kilavuka emphasized that the new addition supports the carrier’s broader turnaround strategy, Project Kifaru 2. The initiative, designed to restore profitability and enhance operational resilience, has been central to the airline’s recovery.
“The addition of this Boeing 737-800 marks a significant milestone in our expansion journey,” Kilavuka said. “It demonstrates our ability to adapt, grow, and secure critical resources amid ongoing challenges in global aircraft availability. Strengthening our fleet remains a priority as we position Kenya Airways for long-term success.”
The airline is actively pursuing additional fleet acquisitions, engaging in discussions with leading aircraft manufacturers and global lessors to secure both narrow-body and wide-body models that offer enhanced efficiency.
DAE CEO Firoz Tarapore reaffirmed the company’s long-standing partnership with Kenya Airways, stating: “This aircraft delivery underscores our strong 20-year relationship with KQ and will support its efforts to meet the rising demand for regional travel.”
Financial turnaround and market comeback
Under the leadership of Chairman Michael Joseph, the airline embarked on a comprehensive restructuring effort dubbed Project Kifaru, focusing on operational excellence, customer satisfaction, innovation, and sustainability. The turnaround strategy has begun to bear fruit, with KQ achieving its first profit after tax since 2013.
KQ has made a financial recovery, posting a Ksh513 million ($4 million) net profit for the six months ending June 30, 2024–its first profit after tax since 2013. This marks a significant reversal from the Ksh21.7 billion ($167.8 million) loss recorded in the same period last year.
The airline’s improving financial performance facilitated its return to the Nairobi Securities Exchange (NSE) after a five-year trading suspension, following the government's withdrawal of renationalization plans. With fleet expansion, rising profitability, and renewed investor confidence, KQ is positioning itself for sustained growth as one of Africa’s leading carriers.
