Airlines eye expansion in 2025

Kenya Airways cabin crew members (R), waive flags as they usher passengers at the Jomo Kenyatta International Airport (JKIA) on July 15, 2020.

Photo credit: File | Nation Media Group

The aviation sector in Kenya targets to consolidate growth in 2025, hoping to ride on improving passenger numbers and cargo volumes to build revenue.

Buoyed by improved fortunes across 2024, all key players including Kenya Airways, Jambojet, Skyward Express, and Safarilink Aviation look set to build on the gains amid route expansion and bigger forays in the lucrative cargo business.

Karanja Ndegwa, chief executive officer of budget airline Jambojet says the company targets to fly 1.45 million passengers in 2025-- which would be 13 percent higher than what was achieved in 2024—as it explores new routes.

He says Jambojet will add two new aircraft to its fleet in the New Year as it rallies to meet growing demand on new routes.

“This is key for us in de-risking the business. We project a five percent contribution to the total revenues from JM Cargo (Jambojet’s cargo unit), charters, and media. The cargo business continues to be strong, with the Goma route contributing 80 percent of the cargo revenues. We have put together structures to enhance our domestic cargo operations, for example, flying the first mile to connect to other global airlines,” says Mr Ndegewa.

"We plan to implement a robust customer experience strategy that will not only enhance loyalty but meet and exceed expectations at every touch point while leveraging on new technology to improve service delivery and reduce costs,’’ he adds.

Kenya Airways is also set to stay aggressive with its expansionism strategy in 2025—building the moment over 2023 and 2024 where it took on an ambitious route expansion plan that included code-sharing agreements with various international airlines.

Only weeks ago, KQ said it targets to launch direct flights to the UK’s Gatwick Airport from the Jomo Kenyatta International Airport (JKIA) starting July 2025 as part of a strategy of expanding its business in the key market. The airline said it would operate three-night flights a week from JKIA to Gatwick starting July 2, 2025—complementing the existing direct flight to the UK through Heathrow Airport, London.

"The United Kingdom is essential and strategic for Kenya Airways and Kenya. It provides a gateway for trade, tourism, education, business, leisure travel, and diaspora connections. We are excited to add Gatwick Airport to our expansive network as it means that KQ guests now have more options in and out of the UK and a convenient schedule that suits their travel preferences” KQ Group managing director and chief executive officer Allan Kilavuka said.

In its route expansion strategy, KQ has signed various code-sharing agreements with diverse international airlines.

Code sharing is a marketing arrangement in which an airline places its designator code on a flight operated by another airline, and sells tickets for that flight.

KQ recently revived a dormant codeshare agreement with Air France to enable seamless travel between Paris and Ljubljana, the capital and largest city of Slovenia.

In August 2023 KQ deepened its ties with Delta Air Lines expanding its codeshare agreement to offer travellers a range of destinations.

From Nairobi’s direct flights to New York, passengers now have access to 31 African cities and 57 destinations across the US and Canada, making global travel more accessible and efficient.

As the year closed, KQ continued its momentum with South African Airways (SAA), announcing in December 2023 an expanded codeshare arrangement that introduced direct flights from South Africa to South America which opened new horizons of intercontinental travel.

KQ also recently signed a new code-sharing agreement with Air France to carry passengers between Paris and Ljubljana. The national carrier and Air France in 2019 agreed to share the route but the deal had not been implemented.

Other local airlines have taken to route expansion across 2024—a trend that is highly likely to carry on in 2025.

Regional aviation firm Safarilink which is known for its focus on tourist destinations, has also established a presence on Zanzibar Island as part of its route growth journey.

Jambojet also entered the Zanzibar route through direct flights between Mombasa and the island from July 1, 2024.

Budget airline Skyward Express also started direct flights from Nairobi to Dar es Salaam in November, marking its expansion outside Kenya.

The launch of flights to Tanzania came after Skyward opened a new hub at JKIA in March 2024—targeting to attract business professionals seeking efficient connections and tourists seeking to explore Dar es Salaam.

Skyward previously operated from Wilson Airport and Jomo Kenyatta International Airport, flying to different destinations in Kenya including Lamu, Diani, Lodwar, Mombasa, Malindi, Eldoret, Kakamega, Kitale, and Migori.

But it is not just the passenger side alone that has witnessed growth among local airlines. KQ, Jambojet, and Renegade Airline Limited all made moves in the cargo business in 2024. Renegade Airline Limited, for instance, secured a plane from Irish firm Abelo under a lease to support its cargo business. Under the deal, Renegade obtained an ATR -500 type of turbo-propelled aircraft that has been repurposed for cargo freight.

“This ATR aircraft is set to enhance Renegade Air’s capacity to transport goods swiftly across domestic and regional routes, supporting various industries such as e-commerce, pharmaceuticals, and perishables,” said Renegade.

Abelo is an Irish-based regional aircraft leasing platform specialising in turboprop aircraft and is backed by funds managed by Oaktree Capital Management, L.P., a global alternative investment firm.

Kenya Airways Cargo (KQ Cargo) also expanded its route network with new direct cargo flights between Sharjah in the United Arab Emirates (UAE) and Mogadishu in Somalia.

KQ Cargo partnered with Global GSA Cargo LLC, a global cargo sales and service agent based out of UAE, as the cargo logistics partner to service the route.

KQ Cargo in November 2023 increased its cargo freight fleet with a B737-800F plane and said it planned to have a second unit of the plane aircraft type. The two -800 freighters would join the carrier's existing B737-300(SF)s.

The airline revealed that the B737-800F aircraft would be deployed on routes to destinations such as Sharjah, Dubai World Central, Jeddah, Riyadh, Dakar Blaise Diagne International, Lagos, N'Djamena, Mogadishu, Mumbai International, Freetown, and Monrovia Roberts.

The standard-body 737-800BCF carries up to 23 tonnes of revenue payload according to its manufacturer Boeing.

Another airline, Astral Aviation in November 2024 added China to its network with a new route from Guangzhou to Nairobi with an onward connection to Maputo in Mozambique. Air Charter Service Hong Kong was the launch customer for the new route which will be served by a 767 freighter, said Astral.

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