KQ revival plan in perfect take-off as passenger numbers up

National carrier Kenya Airways (KQ) turnaround plan appears to be paying off.

The airline recorded a marginal increase in passenger numbers in the last quarter of 2016.  The numbers rose in the wake of sweeping changes effected by the airline's new management team late last year to stand at 1.12 million, a 4.8 per cent growth.

KQ achieved a cabin factor - ratio of occupied seats per trip of public transport services such as airlines - of 72 per cent compared to 68 per cent achieved during the same period last year.

The national carrier, which last week marked its 40th anniversary, is upbeat its multi-million-shilling turnaround strategy will yield more revenues from key markets across the world as well as regionally.

The capacity offered into Europe, using the Boeing 787 in the last quarter of 2016, remained largely unchanged while the capacity offered into the Middle East, China and India declined compared to the same period a year earlier.

This was attributed to the airline's adoption of the Boeing 787-8 and Boeing 737-800 aircraft, which are much smaller than the larger Boeing 777-300 largely used in the previous year.

"Additional frequencies offered by Jambojet into Ukunda, Malindi and Lamu saw capacity on the domestic front grow by 1.5 per cent during this quarter compared to the same period the previous year," said the airline.

Last year, KQ launched Operation Pride, a turn-around strategy looking to increase cabin factor by five per cent to 68.3 per cent.

This accounted for an increase in passenger numbers from 4.18 million to 4.23 million and a reduction in direct operating costs.

Former Safaricom Chief Executive Michael Joseph was appointed to the helm of the airline's board to drive the turnaround plan with the airline's CEO Mbuvi Nguze announcing his impending exit in the first quarter of this year.

The national carrier has indicated that it will continue investing in its African route, which forms the bulk of its market, with increased capacity in most destinations.

"Capacity offered to the Northern African region grew by 9.6 per cent compared to the prior year, driven by increased frequencies to Addis Ababa and Juba," explained the airline.

"In the East African region, capacity grew by 7.1 per cent while capacity offered into West, South and Central African regions grew by 2.5 per cent compared to same period in the prior year, with the introduction of the Nairobi-Entebbe-Bangui route, as well as the Nairobi-Doula-Bangui flight."