Browsing: Kenya Airways

Kenya Airways Losses
  • Kenya Airways losses for FY2023 have majorly stemmed from FX fluctuations.
  • Despite the heightened operating costs, Kenya Airways achieved an operating profit of $79.4 million.
  • International Air Transport Association (IATA) predicts full recovery of the aviation industry from the Covid-19 crisis in 2024.

Kenya Airways net losses for the trading period ending December 2023 have dropped to $171.6 million (KES22.7 billion) majorly attributed to the forex exchange losses suffered during the review period.

The latest result is a 41 percent reduction from the $289.6million (KES38.3 billion) reported in 2022 in what the airline attributes to continuing efforts aimed at navigating KQ’s back onto the path to profitability.

These losses stemming from fluctuations in currency exchange rates (FX Losses), impacted the airline’s financial position, posting the greatest drawback to its financials with $181.4 million loss.

Kenya Airways Chief Executive Allan Kilavuka said that in the review period the airline increased flight …

kq cargo plane 3
  • Kenya Airways Cargo introduced a pair of Boeing 737-800 converted freighters two months ago to expand its cargo capacity.
  • Kenya Airways will also resume direct passenger flights between Nairobi and Mogadishu starting 15th February 2024.
  • KQ already operates the passenger version of the 737-800.

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

The new route will be served weekly, effective 09th February 2024, and is expected to grow to two (2) weekly frequencies in April 2024. KQ Cargo has partnered with GSA Global Cargo LLC, a global cargo sales and service agent based out of UAE, as the cargo logistics partner to service the route.

KQ Cargo recently increased its freight capacities with the entry into service of a B737-800F, which offers an extended range, connecting vital cargo hubs and opening …

Flight Capacity in 2024
  • The open Skies Policy in civil aviation aims to ease international airlines’ access to national airports to increase the flow of tourists and develop their potential as regional air hubs.
  • Kenya is seen to warm up to more international carriers, with the latest being flyDubai, which is now flying directly to the Moi International Airport, Mombasa, after launching last week.
  • Apart from attracting foreign carriers mainly from Europe and the Middle East, airlines from Kenya, Uganda, Tanzania, Rwanda, and other EAC states will operate across borders without restrictions.

The Open Skies Policy in Kenya

Kenya is slowly heeding calls by the private sector to open its skies to more international airlines seeking to fly directly to the country’s Coast, a leading beach destination preferred mainly by Europeans.

This comes as the government also banks on the recently unveiled “visa-free” to open the country to more visitors, aiming to grow the …

trade tensions EAC
  • Trade tensions within the EAC bloc have intensified lately, with neighboring countries taking adverse actions against each other.
  • In the latest development, Tanzania is blocking passenger flights from Kenya Airways to Dar es Salaam, while Burundi has officially closed its borders with Rwanda.
  • Elsewhere, Kenya has been pursuing trade deals with the European Union and the United States, leaving regional economies to play catch-up

Heightened trade and political tensions between the East African member states are threatening to erode the gains of a free market and the dividends of a united bloc for a region expected to achieve the fastest growth across Africa this year.

As East Africa increasingly evolves into a focal point for economic growth and development, underlying trade tensions are testing the region’s unity to the fullest. As nations strive to harness the benefits of globalization, differing economic policies and priorities can often strains trade relations defeating …

Kenya's tourist arrivals
  • The Kenya Tourism Board has developed a five-year (2023-2028) strategic plan to propel the growth of tourist arrivals.
  • It aims to increase the tourism sector’s contribution to Kenya’s economy to $6.6 billion annually by June 2028.
  • Public-private sector collaboration in destination marketing is one of the strategies being employed, incorporating ideas that will shape the industry’s performance within the review period.

Kenya aims to increase annual international tourist arrivals to 5.5 million in the next five years, a goal that would more than triple the current numbers. The ambitious plan is spearheaded by the country’s primary marketing unit, the Kenya Tourism Board (KTB), which is seeking collaboration with private sector players to effectively market the country.

According to KTB Chairperson Francis Gichaba, the sector is experiencing a full recovery, and he anticipates that arrivals by the end of the current financial year will surpass the slightly over 1.9 million visitors …

Ethiopian Airlines
  • Initiative with the US company is expected to cost around $15 million in initial investments.
  • The joint venture will primarily focus on producing aircraft thermo-acoustic insulation blankets, electrical wire harnesses, and other parts.
  • As of early June, Ethiopian Airlines’ order book comprises 29 aircraft, including 17 Boeing 737 MAXs, five Boeing 777Fs, one Boeing 787-9, and six Airbus A350-1000s.

Africa’s largest carrier, Ethiopian Airlines, is set to make aviation history as it enters a groundbreaking joint venture with Boeing to manufacture aircraft parts.

The collaboration, which is expected to cost around $15 million in initial investments, aims to bolster Ethiopia’s aerospace industry.

The Ethiopian Investment Commission announced the deal on August 18, revealing that the state-owned airline has already signed a memorandum of understanding with Boeing and the local state Industrial Parks Development Corporation (IPDC).

Ethiopia Airlines, Boeing joint venture

This strategic partnership will establish a cutting-edge aerospace factory at …

African Airlines Revenues
  • Airlines across Africa are expected to fly into a combined $500 million loss this year. The loss is, however, an improvement from the combined $800 million loss suffered in 2022.
  • African airlines have to navigate several economic, infrastructure, and connectivity challenges.
  • Data shows Egypt, Morocco, and Ethiopia carriers have seen an increase in traveler numbers in March 2023.

African airlines are expected to fly into a combined $500 million loss this year. The projected loss is, however, a significant improvement from the $800 million combined loss sustained last year.

According to the International Air Transport Association (IATA), Africa remains a difficult market for airlines.

African Airlines smarting from pandemic

Companies have to navigate several economic, infrastructure, and connectivity challenges. These hurdles continue to significantly impact the industry, which is still smarting from the Covid-19 economic fallout.

Last year was a rough period for African airlines in the skies. …

Travel agents from the Middle East at Fort Jesus Mombasa
  • The Middle-East market is showing great potential as the period from January to March 2023 witnessed a 20 percent jump in arrivals. 
  • Building on this positive trajectory, Kenya aims to expand the Middle-East market by 30 percent by June 2024. 
  • Authorities are leveraging partnership with Kenya Airways, travel agents, and private sector players.

Tourist numbers from the Middle East are registering an impressive pattern in Kenya, pointing to a key emerging source of holidaymakers, a trajectory that could drive arrival numbers, shoring up the country’s forex earnings.

To drive international arrival numbers, the Kenya Tourism Board (KTB) is strategically positioning itself. The latest developments indicate KTB is harnessing recently-launched Mombasa and Dubai direct flights to woo tourists. With wide offerings for Mombasa-bound holidaymakers, Kenya could tap Middle-East market and boost inbound tourism.

Rising tourist numbers from the Middle East

The Middle East market is showing an immense potential on boosting …

martin.mwita Kenya reaps from peaceful elections as international tourist numbers grow 70Tourists arrive at Moi International Airport Mombasa
  • The sector rebounded in 2022 due to a 70.45% increase in international arrivals.
  • According to official government figures, the number of arrivals increased to 1,483,753 from870,463 in 2021.
  • Rebound attributed to a number of source countries relaxing Covid-19 limitations and opening up travel.

The tourist industry in Kenya is prepared for a significant boom this year, following last year’s good performance buoyed by the resumption of the post-pandemic international travel and robust tourism activities.

The sector, which offers great investment potential primarily in hotel facilities, tour and travel businesses, and travel agencies, rebounded in 2022 due to a 70.45% increase in international arrivals.

According to official government figures, the number of arrivals increased to 1,483,753 from870,463 in 2021.

The Tourism Research Institute (TRI) attributes the rebound to a number of source countries relaxing their Covid-19 limitations and opening up travel.

Prior to the pandemic, the sector contributed 10.4% of the …

KQ codesharing
  • KQ Cargo has entered into a codesharing agreement with Astral Aviation to boost trade between Africa and the Middle East
  • The codesharing deal is the first of its kind in Africa, and it would boost trade and commodity movement from the Middle East into Africa by leveraging the strengths of the two cargo operators 
  • Kenya Airways and Astral Aviation have had a commercial and interline cooperation for cargo for the past 20 years

Kenya Airways cargo unit (KQ Cargo) has entered into a codesharing agreement with Astral Aviation to boost trade between Africa and the Middle East. The codesharing deal is the first of its kind in Africa.

KQ said it would put its codeshare flight numbers on Astral Aviation flights originating from Dubai in the United Arab Emirates into Nairobi for onward distribution within Africa.

The agreement by the two leading cargo operators on the African continent is expected …