KENYA AIRWAYS ANNOUNCES OPERATING RESULTS FOR QUARTER TWO
The Pride of Africa yesterday released consolidated Quarter Two results, showing once again impressive growth and giving hope to a subsequent rise in the companys share price, which in view of the soon to be launched rights issue has been somewhat trading below true value.
The offered capacity totaled 3,639m seat kilometres, which was 7.3% better than last years level as a result of additional destinations launched in the second half of 2010 to Rome (Italy), Nampula (Mozambique) and Malindi (Kenya) while NDjamena (Chad) and Ouagadougou (Burkina Faso) were launched in the first half of 2011.
Capacity offered into Europe registered an 8.6% growth compared to the same quarter of prior year as a result of introducing direct flights to Rome and operating double daily weekend flights on London route.
The capacity into Middle East, Far East and India regions grew by 9.7% compared to last year. Bombay registered the highest growth in these regions at 26.4% due to the deployment of B777 in July and August 2011 compared to B767 operated during the same period last year.
The Northern Africa region grew by 8.1% in capacity owing to the introduction of double daily departures from Nairobi to Juba in the Republic of South Sudan. Embraer aircraft are used on that route to meet the rising demand for business travellers. Capacity availed into the East African region shrunk by 13.3% compared to last year due to cancellation of night flights to Zanzibar as a result of low demand and operating combined flights to Bujumbura and Kigali as opposed to direct flights evidenced last year.
Capacity offered in the Central Africa region grew by 5.4% mainly from increased frequencies to Bangui, Libreville via Douala and Brazzaville route connecting through Kinshasa. Capacity in Southern Africa grew by 5.4% due to introduction of Nampula in December 2010 and increased frequencies to Harare and Maputo. West Africa capacity grew by 8.6% mainly from increased operations on the Bamako Dakar routes and the introduction of Ouagadougou and NDjamena via Cotonou.
On the domestic market, capacity grew by 35.4% compared to same period prior year largely due to introduction of the Mombasa Shuttle from November 2010 averaging 10 daily flights and the reintroduction of Malindi flights. Kisumu registered a 28.6% growth in capacity through increased frequencies now offering up to 20 flights a week.
Uptake of total capacity offered stood at 2,831m revenue passenger kilometres which represented a 14.8% growth compared to last year. The total passenger tally, which closed on 1,004,476 increased by 18.2% on the previous year resulting to an average cabin factor of 77.8% compared to last years level of 72.7%.
Cargo tonnage at 16,021 increased by 13.5% compared to last years level emphasizing an improved business environment and increased sales efforts.
Passenger uplift to Europe at 158,247 indicates an 11.0% year on year growth on the back of a 8.6% capacity growth resulting to 83.3% seat occupancy level.
In the Middle East, Far East and India regions uplifted passenger traffic at 133,833, showed an increase of 18.7% against a capacity growth of 9.7%. The recorded cabin load factor of 88.3% was 5.9 points better than during the previous year.
Within Africa but excluding Kenya passengers uplifted totalled 509,570 indicating a growth of 13.5 compared to a 4.4% capacity growth. The resulting passenger cabin load factor of 67.8% was an improvement of 7.3 points compared to same period a year ago.
Passengers uplifted within Kenya stood at 202,826 which meant a 42.0% growth. The resulting cabin factor of 74.0% was above 70.9% achieved last year, all the more remarkable considering the huge capacity rise.
Competitors asked about these results, which are by all standards impressive in particular on the domestic market where a real battle has been going on since Kenya Airways determined push back on to the Malindi and Kisumu routes and the re-introduction of the Mombasa Shuttle, were not keen to inflame the situation more than it already is by making any comments about KQs performance as one regular aviation source from Nairobi put it to this correspondent, a clear sign that competition truly is at cut throat levels.
Watch this space for the most up to date information from the Eastern African and Indian Ocean aviation sector.