24.11.2023 - 02:33 UTC
Kenya Airways (KQ, Nairobi Jomo Kenyatta) has taken delivery of its first B737-800 freighter and plans to add a second unit of the type by February 2024.
"With the addition of this freighter, Kenya Airways will now offer increased cargo capacity to existing routes as well as new cargo destinations and we encourage the market to take advantage of the new provision to maximise the trade opportunities and potential for the region," CEO and Group Managing Director Allan Kilavuka said.
The airline did not reveal the identity of the aircraft and did not respond to ch-aviation's request for comment. Kilavuka recently revealed the plans to add two B737-800 freighters in an exclusive interview with ch-aviation.
Kenya Airways said it would utilise the aircraft on routes to destinations such as Sharjah, Dubai World Central, Jeddah, Riyadh, Dakar Blaise Diagne International, Lagos, N'Djamena, Mogadishu, Mumbai International, Freetown, and Monrovia Roberts. The two -800 freighters will join the carrier's existing B737-300(SF)s.
31.10.2023 - 04:11 UTC
Kenya Airways (KQ, Nairobi Jomo Kenyatta) is seeking a strategic investor as it continues to battle foreign exchange volatility negatively impacting its turnaround strategy despite its recent KES998 million shilling (USD6.6 million) operating profit, according to Chief Executive Officer Allan Kilavuka.
Briefing the Parliamentary Transport and Infrastructure Committee on October 24, he said with limited support from the government and growing foreign currency-denominated debts, the majority-state-owned carrier has no alternative but to seek a strategic investor, reported Business Daily Africa.
Kenya Airways continues to struggle with debts of KES196.4 billion (USD1.3 billion) as of September 31, 2023, according to documents presented by Kilavuka to the committee. He explained that the depreciation of the Kenyan shilling against the US dollar has led to substantial forex losses, primarily due to the revaluation of US dollar-denominated loans and liabilities.
He said the airline aims to achieve a capacity growth of 23% in 2025 and 16% in 2026, while also stabilising the Kenyan shilling in the short to medium term. "We are hopeful of a turnaround, however,...
27.09.2023 - 06:33 UTC
A Kenyan senator wants clarity on the government's measures to address an aircraft shortage at Kenya Airways (KQ, Nairobi Jomo Kenyatta), reports The Star newspaper.
Senate Committee on Roads, Transportation & Housing member and Nandi Senator Samson Cherargei wants the government to disclose the details and terms of current and planned aircraft leases and their commercial viability.
Speaking in Parliament on September 25, he has also called for transparency on the strategic partnership framework between Kenya Airways and South African Airways (SA, Johannesburg O.R. Tambo) for a pan-African airline group and whether it will result in a merger of the two airlines.
Mombasa Senator Mombasa Faki lamented that Kenya Airways has been making losses for years and become a burden to taxpayers. "If you look at the ticket from Nairobi Jomo Kenyatta to Mombasa, it is not less than KES15,000 shillings (USD101). We are left to wonder whether the high cost is because of fuel, cost of running the company, or the debts the airline is supposed to repay," he said....
31.08.2023 - 08:17 UTC
Kenya Airways' 120% enhanced operational performance in the first half of 2023 has been nullified by a KES17 billion shilling (about USD117 million) loss due to foreign exchange fluctuations affecting monetary items, loans, and leases, resulting in a pre-tax loss of KES22 billion (USD151.3 million), the airline announced.
Speaking at an investor briefing, Group Managing Director and Chief Executive Officer Allan Kilavuka said a 14% devaluation of the Kenya shilling against major currencies has resulted in overheads rocketing by 22%, and, together with legacy debt, continued to hold back the airline.
"We are working to resolve the issue of the legacy debt in collaboration with our stakeholders and the Kenyan government. The debt is worsened by the 14% devaluation of the Kenyan shilling against the [US] dollar since January, which we have had to book as foreign exchange losses. The devaluation of the Kenya shilling has a significant negative impact on our financials as a majority of our transactions are carried out in the major foreign currencies. This has, in turn, an impact on our overhead costs,...
