29 January 2013

Kenya: Eurozone Crisis Eats Into Kenya Airways' Numbers

Kenya Airways passengers on European routes dropped to 95,036 in the third quarter of 2012 from 117,527 over the same period in 2011 as the Eurozone crisis persists.

Releasing its quarter three operating results yesterday, the airline said in a statement that total passengers it carried over the quarter were 991,149 translating to a modest rise of 3.6 per cent.

"Capacity offered into Europe shrunk by 26.6 per cent compared to the same quarter of prior year due to capacity rationalization occasioned by the Eurozone crisis and the suspension of the Rome flights," said the airline in a statement.

Capacity into Middle East and Far East regions grew by 19.4 per cent boosted by launch of direct flights to Delhi. Passengers on this route increased by 15.2 per cent to a total of 151,100.

KQ deployed larger aircraft ton the East Africa route and also increased capacity in West and Southern African routes generating a 2.9 per cent rise in passengers to 516,894. Increased demand for cargo and excess baggage boosted Central Africa route to a capacity growth of 28.6 per cent.

Passengers within Kenya were up 10.9 per cent at 228,119.

KQ reported a whooping Sh4.7 billion loss in the first half of the year partly attributed to the effect of the Eurozone crisis on the business.

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