Africa Weekly Aviation Trails: Week 13, 2024 Highlights.

In a significant development last week (Week 13), an airline marked its return to profitability after seven years, showcasing resilience and strategic recovery efforts. Additionally, the continent’s leading carriers in terms of available seat miles (ASMs) were revealed, highlighting the robustness of Africa’s aviation industry. Moreover, crucial agreements were inked, celebrating new air connectivity and the acquisition of modern fleets, among other noteworthy events. Dive deeper into these pivotal updates in our latest edition of Africa weekly aviation trails below.

Introduction.

Despite enduring a loss after tax of Ksh 23 billion (approximately 174 million USD), marking the eleventh consecutive year of losses, Kenya Airways‘ ongoing resilience and strategic initiatives have led to a significant turnaround. For the year ending December 31, 2023, the airline saw a remarkable shift, recording an operating profit of Ksh 10.5 billion (around 79 million USD). This astounding growth represents a 287% surge compared to the previous year’s operating loss of 5.6 billion, marking a triumphant return to profitability after seven years of challenges.

Moreover, amidst a 37% rise in total operating costs, fueled by a 44% increase in deployed capacity, Kenya Airways navigated through operational challenges caused by the Covid-19 pandemic. Notably, direct operating costs surged by 48% in tandem with capacity expansion, offset by a 47.5% reduction in fleet costs due to strategic fleet rationalization. However, overheads experienced a 22% uptick, primarily driven by escalating employee expenses and foreign currency fluctuations affecting the Kenya Shilling against major global currencies, notably the US Dollar.

On a separate note, Madagascar Airlines, formerly Air Madagascar, celebrated a significant milestone with its reinstatement of approval by the International Air Transport Association (IATA). This reinstatement grants the airline access to the Billing and Settlement Plan (BSP) and the IATA Clearing House, enabling the distribution of tickets through travel agencies and tour operators. This development marks a renewed era of growth and visibility for Madagascar Airlines after facing financial and image challenges that led to its exclusion from these platforms in 2016 and 2018.