KENYA AIRWAYS RELEASES SECOND QUARTER RESULTS
The Pride of Africa has yesterday released the operating results for their second quarter, which ended on 30th September, showing a mixed bag of results but also underscoring the urgency of cost saving measures introduced in recent weeks by management.
Capacity to the airline’s markets in Europe shrank by 13.8 percent, largely as a result of Rome being suspended as a result of weak demand but also due to reduction in frequencies to other market places, reflecting the woes of the Euro Zone economies. A boost however is expected for the coming quarters in terms of passenger and cargo uplift to London since the withdrawal of Virgin from Kenya towards the end of September will undoubtedly impact positively on the performance of flights to the UK.
In contrast did capacity rise to the Middle and Far East by a whopping 34.5 percent, showing a new orientation of major traffic flows for Kenya Airways and the immediate reaction to changed market conditions.
In percentage terms was growth also seen in Eastern Africa, the airline’s home market, with an 11.4 percent rise, 9.1 percent to West Africa, 4.2 percent to Northern Africa – Juba is still being considered part of that market region for the time being – and 3 percent to Southern Africa.
For domestic flights has the change of the workhorse aircraft from the B737 to the E190 resulted in a capacity reduction of 9.6 percent compared to a year ago.
Total passenger uplift stayed literally the same with 1.004.425 passengers in Q2 this year.
All eyes are now on the results the current Q3 will produce, due to be announced by end January 2013, when it is hoped that the financial performance sees encouraging signs from the savings generated by work force rationalization and related measures such as increased outsourcing. Concern was however expressed by aviation observers that the closer Kenya gets to the next General Election in early March 2013, the more this might impact on the airline’s performance, as on the entire aviation industry, should even the slightest sense of trouble begin to emerge, reminiscent of the post election violence in early 2008 which swept the country. Watch this space.