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 2010/11 (year ending March 31, 2011), the carrier reported a net profit of KES3.5 billion ($42.6 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 ($12.8 million) and a net profit of KES2 billion ($24.5 million). The large improvement in the net result was mostly due to a KES1.5 billion ($17.5 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.
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 2010/11. It expects to handle approximately 3.7 million passengers for the year to March 2012, and more than four 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 per centper annum and the regional aircraft fleet is expected to double over the next 20 years, with Kenya Airways' plans exemplifying that.