Kenya Airways’ Revenue Jumps 12% on Network Expansion Gains
Kenya Airways has recorded a 12.2% increase in revenue for the six months period ended June 30, 2019 attributed to the positive performance of recently introduced routes, in line with the airline’s network expansion strategy.
Revenue for the first half increased to Kshs. 58.55 billion from Kshs. 52.19 billion compared to the same period last year.
During an investor briefing held on Tuesday, the Kenya Airways board and management conveyed optimism that the strategic investment initiatives the airline has been implementing in the turnaround programme for the past two years are progressively paying off.
According to Kenya Airways board Chairman Michael Joseph noted, the airline will continue to steer the business away from the previous headwinds, steadily digging it out of the historic loss of Ksh. 25 billion posted in 2014.
Financial results indicate that as at the end of 2018, the airline's losses had narrowed by over 250%, a testament of the airline's commitment to its turnaround plan.
Investment in new strategic routes such as New York, Mauritius, Libreville, Mogadishu, Rome, Geneva and Malindi delivered a 6.6% increase in passenger numbers during the period to hit 2.4 million. This boosted passenger revenues by 5.9% to Kshs. 42.60 billion.
Kenya Airways also recorded impressive 45.2% growth in income from ancillary and other revenues that includes Maintenance, Repair and Overhaul (MRO) which rose to Kshs.10.65 billion from Kshs. 7.34 billion recorded in the same period last year. Revenue from cargo improved to Kshs. 4.22 billion.
During the period, Kenya Airways brought back two Boeing 787s which were sub-leased to Oman Air. The two aircraft will be used to support the airline's new long-haul operations.