Building on success, Kenya Airways generates operating profits in 2011
Plans to add New Delhi & Beirut in 2012 Increase frequency to Jeddah
6th May 2012 UAE: Kenya Airways is one of the most successful and consistently profitable airlines in Africa. The carrier has achieved five straight years of operating profits, as well as net profits over four of the past five years. In FY2010/11 (year ending 31-Mar-2011), the carrier reported a net profit of KES3.5 billion (USD42.6 million), improving significantly on the previous financial year.
Over the first half of the 2011/12 financial year, the carrier continued its run of solid profitability, with an operating profit of KES1 billion (USD12.8 million) and a net profit of KES2 billion (USD24.5 million). The large improvement in the net result was mostly due to a KES1.5 billion (USD17.5 million) gain on fuel derivatives.
Traffic has gone from strength to strength, as the airline has developed its network and grown its fleet. The carrier operates to 56 destinations, 45 of them within Africa. It has progressively been adding to its fleet, most recently adding Embraer regional jets to operate to smaller African destinations as well as domestic routes.
Mr. Abraham Joseph, Area Manager – Middle East, Pakistan & India for Kenya Airways said, “The outlook is very positive for Kenya Airways. 2012/2013 plans to be an exciting year for the carrier as we start 11 new destinations this financial year first of which is New Delhi. In the Middle East, we will be starting Beirut in the coming months and also increase frequency to Jeddah”.
The carrier handled a little over 3.1 million passengers in FY2010/11. It expects to handle approximately 3.7 million passengers for the year to 31-Mar-2012, and more than 4 million passengers in 2012/13.
Despite Kenya Airways’ strong traffic outlook, African traffic was subdued during most of 2011, partly due to the political instability in the North African region during the year. Kenya Airways continues to face growing competition from European and Middle East network carriers.
Kenya Airways already has a solid operational base and has proven it can be sustainably profitable. Despite the recent softness of passenger and traffic growth in Africa, both the regional and long-haul markets are expected to be buoyed by the economic growth and increasing foreign investment in the region. Long-term projections for Africa put overall passenger traffic growth at 5.1-5.7% p/a and the regional aircraft fleet is expected to double over the next 20 years, with Kenya Airways' plans exemplifying that. It is clear the carrier is not going to miss out on a once in a lifetime expansion opportunity.
About Kenya Airways
Kenya Airways is a listed company. 30.94% of its shares are controlled by individual shareholders, with local strategic investors holding another 14.2% and foreign investors controlling 5.84%. However, it also has secure backing from KLM, which owns 26% of the airline, and also backing from the Kenyan Government, which has a strategic 23% stake. KLM’s part ownership in Kenya Airways was a major part of the carrier’s accession into SkyTeam in 2010, a move that has cemented its place as one of Africa’s leading carriers.
Kenya Airways currently flies to over 56 destinations worldwide, 45 of which are in Africa and carries over three million passengers annually. Kenya Airways is also a major employer with a workforce of over 4,200 employees.
It continues to modernize its fleet with its 34 aircraft fleet being one of the most modern in Africa. The on-board service is renowned and the lie-flat business class seat on the wide-body aircraft is consistently voted among the world’s top 10. Most recently it has scooped top awards at the Africa Investor (Ai) Tourism Investor Awards and was declared the Business Airline of the Year in Africa. Kenya Airways takes pride for being in the fore front of connecting Africa to the world and the World to Africa through its hub Jomo Kenyatta International Airport.
For more information, please visit www.kenya-airways.com