Kenya Airways is shifting its focus to securing a strategic investor for a fresh capital injection under the Kifaru 2 project as it aims to sustain profitability in 2024 after posting strong earnings in the year to June.

The Nairobi-based carrier made a surprising return to profitability, reporting a Ksh513 million profit for the review period, driven by a surge in passenger numbers and a favourable exchange rate.

This marks the airline's first profit in a decade, a stark contrast to the Ksh21.7 billion loss recorded in the same period last year, which was attributed to increased operating costs.

Kenya Airways reported a forex loss of approximately Ksh32 billion for the fiscal year ending 2023, largely due to the depreciation of the Kenyan shilling against the US dollar. However, the recent strengthening of the local currency provided a significant boost to the airline.

CEO Allan Kilavuka attributed the profitability to Project Kifaru, which focuses on adopting best practices across the organisation, noting that 95 percent of the required tasks under the project have been achieved.

"We are now focusing on Kifaru 2, which includes bringing on board a strategic investor. This is crucial as we need fresh capital to reduce our debt levels," said Kilavuka during investors briefing on Monday.

He added that the strategic partner, expected to be secured by the end of the year, would bring expertise to help expand the airline's network.

The airline recorded a 10 percent increase in passenger numbers, reaching 2.54 million passengers. Capacity, measured in Available Seat Kilometers (ASKs), rose by 16 percent to 7.991 billion ASKs, while Revenue Passenger Kilometers (RPKs) improved by 14 percent.

Total revenue grew by 22 percent to Ksh91 billion, driven by higher passenger numbers and cargo.