Kenya Airways has reported a net profit of KES 384.0m in 1H14 from a loss of 4.8bn in 1H13. The improvement in performance was driven by a 9.0% y/y rise in revenues as well as an improvement in the companyโs operating profit margin from -11.1% to 3.2% in 1H14. Direct costs declined 6.6% y/y despite the 9.0% y/y increase in revenues which resulted in a 1,021bps increase in the contribution margin to 31.4%. Overheads also declined 7.5% y/y to KES 9.4bn following the restructuring exercise last year. Net finance costs have increased 3 times to KES 726.0m largely due to acquisition of new airplanes during the period. (Source; Business Daily, Kestrel Research)