KQ passenger numbers up 4.8pc despite reduced fleet

Kenya Airways uplifted 1.12 million passengers in the three months to December 2016, representing a growth of 4.8 per cent from the number transported during a similar period the previous year.

KQ, as the carrier is known by its international code, achieved this growth despite reducing its fleet by seven to 36 through sub-leasing, returning leased ones and disposals in order to boost its cashflow position and reduce operating expenses.

The airline transported 2.2 million passengers in the half-year to September, meaning that it now needs to ferry about 910,000 customers in the three months to March to hit the 4.23 million passengers airlifted in the previous financial year.

“During this (third) quarter the airline continued to operate a smaller fleet more efficiently, as part of its recovery strategy,” the cash-strapped national carrier said in a statement.

KQ uplifted 102,749 passengers to Europe during the quarter, marking a growth of 2,877 passengers more than those the airline recorded in the three months to December 2015.

Following a 15.6 per cent reduction in capacity on the Middle East and Far East routes, passenger traffic reduced by 6.8 per cent to close quarter three at 138,700.

This dip is as a result of KQ deploying the Boeing 787-8 and Boeing 737-800 aircraft to these regions as opposed to the Boeing 777-300 which has a higher capacity.

Regional market

Passenger numbers in Africa, excluding Kenya, registered a growth of 5.2 per cent to close the period at 530,842 as the continent continued to be the airline’s biggest market.

“In the East African region capacity grew by 7.1 per cent driven by more operations on the Boeing 737-800, which has a higher capacity, and additional frequencies,” the airline stated.

“Additional frequencies offered by Jambojet into Ukunda, Malindi and Lamu saw capacity on the domestic front grow by 1.5 per cent during this quarter compared to the same period the prior year.”

READ: Jambojet seeks executive to drive non-ticket income

The national carrier cut its net loss for the six months to September by more than half to Sh4.8 billion on the back of deep cost-cutting intended to stabilise the cash-strapped airline.

The airline’s decision to sell and sub-lease aircraft reduced its fleet ownership costs by Sh4.6 billion to Sh8.5 billion and improved its after-tax loss by 60 per cent from last year’s Sh11.95 billion.

KQ is undertaking a turnaround strategy which has seen it put assets – including land -- up for sale, retrench 118 staff, let go of key management staff and prepare for a shareholders’ bailout.