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Kenya Airways Revenue Increases as Passenger Numbers Grow


Kenya Airways (KQ) has recorded a 12.4% increase in revenue for the year ended December 31, 2019, from Kshs 114,185 million in 2018 to Kshs. 128,317 million.

The positive performance has been attributed to the expansion of the network, improved passenger, cargo, ancillaries, and other revenue streams.

In the year under review, the airline invested in new routes by introducing Geneva, Rome and Malindi to the network. This investment in new strategic routes contributed a 6.7% increase in passenger numbers to hit a record 5.1 million passengers.

The Cargo loads grew by 6.3% from an uplift of 64,238 tonnes the previous year to 68,264 tonnes and a positive contribution to the bottom line of Kshs 0.2b.

During the period, KQ brought back two Boeing 787-8 Dreamliners that had been previously sub-leased to Oman Air to support the new routes as part of the network optimization. This led to Available Seat Kilometres (ASKs) increase by 15%.

Expenses resulting from the opening of new routes saw direct operating costs go up by 7.9%, from Kshs 75 billion to Kshs 80.9 billion. The return of the 2 wide bodies contributed to increased fleet costs and a reduction in the previously collected lease fees.

Expenses resulting from the opening of new routes saw direct operating costs go up by 7.9%, from Kshs 75 billion to Kshs 80.9 billion. The return of the 2 wide bodies contributed to increased fleet costs and a reduction in the previously collected lease fees.

Despite the increased flight frequency, KQ maintained low fuel costs. The fuel costs during the year in review stood at Kshs 33.2 billion, a marginal 0.4 % increase from Kshs 33 billion incurred during the same period last year.

Total costs in the year increased 16%, given the investments in new routes, the return of the two wide body aircraft, and the adoption of the new accounting standards IFRS 16. The Group posted a loss before tax of Kshs 12.975 billion.

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