Revealed: The worst route for Kenya Airways revenues
A fleet of Kenya Airways planes at the Jomo Kenyatta International Airport in this picture taken on July 15, 2020.
What you need to know:
- KQ operates, it generated most revenues from within Africa, followed by Europe, Middle East, China and North America.
- The airline cut total operating expenses by Sh2.89 billion, or 3.62 percent, to Sh77.02 billion compared with the year before.
India remains the most depressed market for Kenya Airways (KQ), new data shows, shedding 67 per cent of revenues earned by the carrier on the route in 2021 compared to the previous.
An annual report shows that the national carrier’s revenues on the India route dropped from Sh5.5 billion in 2019 to Sh1.78 billion last year slowing the airline’s recovery journey.
The data showed that 2020 was also a bad year for KQ on the same route with its revenues dropping to Sh2.368 billion when Covid-19 pandemic knocked the world upside down.
The report shows that in 2021 it lost 24.6 percent of revenues on the Indian route compared to 2020. It was the only route that recorded a reduction of revenues last year, compared to 2020.
Out of the six routes categorised based on the region KQ operates, it generated most revenues from within Africa, followed by Europe, Middle East, China and North America, while India closed.
It earned Sh38.2 billion from its Africa operations, Sh11.4 billion from its European route, Sh7.7 billion in Middle East, Sh6.5 billion in the China market and Sh4.58 billion in North America. All the routes recorded an improvement in revenues recorded in 2021, compared to 2020.
For instance, revenues for the African market rose from Sh27.7 billion in 2020, while the Middle East route had in 2020 earned the airline Sh4.5 billion. China, on the other hand, earned KQ Sh4.8 billion in 2020, while North America earned it Sh2.35 billion.
KQ narrowed its net loss for the year ended December by 56.58 per cent on higher revenue as travel picked up with easing of Covid-19 restrictions.
The national carrier reported a net loss of Sh15.8 billion in the review period compared to a net loss of Sh36.2 billion the year before when travel restrictions hit operations hardest, including the grounding of its planes for months.
Total revenue in the review period jumped 32.98 percent to Sh70.22 billion, partly lifted by alternative sources such as air charter services which increased by 300 percent and helped compensate for income lost because of travel restrictions on some routes.
The struggling airline cut total operating expenses by Sh2.89 billion, or 3.62 percent, to Sh77.02 billion compared with the year before. It also reduced lease rentals for aircraft by Sh10 billion.
This, combined with the higher revenue, resulted in an operating loss of Sh6.8 billion -- a sharp decline from Sh27.11 billion the year before.
