Jambojet has been banking on the domestic market to grow its passenger numbers and revenues as competition for the skies increases.
Budget airline Jambojet, a subsidiary of Kenya Airways #ticker:KQ, says it has now flown 2.5 million travellers since it began operations in Kenya four years ago.
The carrier, which is boosting its fleet amid a regional and local expansion plan, has been banking on the domestic market to grow its passenger numbers and revenues as competition for the skies increases.
“This is a major milestone for us, being one of the youngest carriers on the continent to hit such a breakthrough is great.
“The airline reached its one million passengers milestone in February 2016 and in a little more than two years the number has grown to 2.5 million,” said CEO Willem Hondius in a statement on Monday. Jambojet flies between 45,000 and 50,000 passengers per month in Kenya.
In the nine months to December 2017, the airline carried a total of 434,848 passengers and achieved passenger revenues of Sh2.64 billion. This translated to a pre-tax loss of Sh101 million in the same period.
The budget carrier banks on ancillary services to drive revenue as it operates a no-frills model where passengers enjoy lower fares but have to pay for extras such as food, baggage as well as seat choices and legroom.
Ancillary services — like in-flight advertising, entertainment, onboard shopping, Internet gaming, car hire, and frequent flier programmes — are another channel through which low-cost carriers offset low ticket costs.
Jambojet launched locally in April 2014 and has been flying to Nairobi, Mombasa, Kisumu, Eldoret, Malindi and Ukunda.
It also expanded to Uganda this year.
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