BUSINESS

KQ unveils plan to end reliance on State bailouts

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A Kenya Airways plane taxi at the airport. PHOTO/@KenyaAirways/X
A Kenya Airways (KQ) plane taxi at the Airport. PHOTO/@KenyaAirways/X
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Kenya Airways (KQ) has laid out a renewed roadmap to strengthen its business, grow revenue and eventually operate without relying on government financial support, as the airline seeks to build on its recent return to profitability.

The plan was presented to senior government officials during a meeting chaired by Head of Public Service Felix Koskei on Thursday, August 6. The session brought together Principal Secretaries to review the national carrier’s performance and discuss the next phase of its recovery.

Board Chairman Kiprono Kittony said Kenya Airways is taking a wider approach to fixing its finances by reducing operating costs, attracting more passengers and expanding into new destinations. He said the airline is also working to improve efficiency across its operations while positioning itself to benefit from growing demand for air travel across Africa.

Despite the airline’s commercial ambitions, Kittony argued that Kenya Airways should not be judged only by the profits it generates.

He said the airline creates value beyond its balance sheet by supporting tourism, trade, investment and thousands of jobs linked to the aviation industry.

“Kenya Airways goes far beyond, and I’d like to encourage governments to look at it beyond a P&L play,” Kittony said.

He noted that aviation contributes only about two to three per cent of Kenya’s Gross Domestic Product, adding that the figure is much higher in Gulf countries where governments have heavily invested in the sector. According to him, Kenya has the opportunity to grow aviation into a much stronger economic pillar.

The chairman told officials that the airline’s long-term objective is to become financially stable enough to stand on its own without seeking repeated State rescue packages.

KQ on public confidence

Chief Executive Officer Captain George Kamal acknowledged that Kenya Airways still has work to do in rebuilding public confidence. He said flight delays and cancellations have shaped public opinion about the airline, even as operational improvements continue behind the scenes.

“We do not put the correct picture of Kenya Airways out in the market,” Kamal said, adding that the company needs to communicate better with customers whenever disruptions occur.

The latest strategy comes after several years of restructuring that saw the airline streamline its route network, renegotiate costs, strengthen partnerships with other carriers and improve fleet utilisation. The measures have helped Kenya Airways recover from the financial strain caused by the COVID-19 pandemic, rising debt and soaring operating expenses.

The airline recorded a major milestone in 2024 when it posted a net profit of Ksh 5.4 billion, ending more than ten years of losses. Even so, sustaining that performance remains a challenge as global airlines continue to grapple with expensive aviation fuel, fluctuating currencies, aircraft supply constraints and intense competition for passengers.

For the government, Kenya Airways remains more than a national airline. It is viewed as a strategic asset that connects Kenya to global markets, supports the tourism industry and strengthens Nairobi’s position as one of Africa’s busiest aviation hubs.

The latest briefing signals that the government wants to see the airline complete its recovery journey and become a commercially sustainable business that no longer depends on public funds to remain in the skies.

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