Aviation
Kenya Airways reduces operating loss, maintains path to recovery, releases H1 result
Kenyan national carrier, Kenta Airways Plc National carrier Kenya Airways PLC (KQ) has released its Half Year financial results for the six months ending June 2022 at a virtual investor briefing held .
The Group’s total revenue stood at Kshs 48,104 million, recording a 76 per cent increase compared to the same period last year. This increase is mainly attributed to significant growth in passenger revenue which grew by 109 per cent, and cargo revenue which increased by 18 per cent.
During the first half of 2022, operations were positively impacted by pent-up demand and the removal of travel restrictions, resulting in a strong and sustained recovery in trading performance compared to a similar period in the prior year.
KQ uplifted a total of 1.61 million passengers during the period, an 85 per cent improvement compared to the prior year’s 0.87 million passengers. This, however, remains 33 per cent lower than the pre-pandemic period of 2019. Cargo tonnage increased by 39 per cent compared to the same period in 2021, demonstrating continuous outstanding growth in air freight services.
Kenya Airways Board Chairman Michael Joseph said, “The opening of borders worldwide has led to quick rebounds in some key markets. Lingering travel restrictions in some markets have limited the recovery. It is also important to note that these results were further affected by the high price of aviation fuel which is over 65 per cent more than last year. If we adjusted for the fuel price spike, the operating profit for the period would have been Kshs 1.5B.”
The International Air Transport Association is confident global airline passenger numbers will reach 83 per cent of pre-pandemic figures in 2022, and the aviation industry’s recovery to profitability will be within sight despite ongoing uncertainties. Strong demand, lifting travel restrictions in most markets, low unemployment in most countries, and expanded personal savings are fuelling a resurgence in demand that will see industry revenues reach USD782 billion, an increase of 54.5 per cent year-on-year and representing 93.3 per cent of 2019 levels.
Kenya Airways Group Managing Director and CEO Allan Kilavuka said, “The industry is experiencing recovery. Our focus is to ensure that we strengthen our operational resilience through innovation and diversification to deliver great and reliable services to our customers. We have transformed the airline during the pandemic, enabling us to emerge with renewed strength, underpinned by a product, network, and service that customers value.”
Aviation
Aviation sector to benefit from RIDF
Aviation is set to be part of key economic drivers that will benefit from President Bola Tinubu’s proposed Renewed Hope Infrastructure Development Fund (RIDF).
In a statement by Ajuri Ngelale, the fund targets strategic sectors like agriculture, transportation, ports, energy, healthcare, and education along with aviation.
The initiative plans to inject funds into vital national projects to foster growth, bolster local value addition, generate jobs, and spur innovation.
Efficient use of low-interest loans and financing options will secure advantageous arrangements for project financing and operation.
The focus on aviation enhancement involves modernising major airports nationwide with targeted investments and infrastructure upgrades.
The statement reads, “On aviation enhancement, the focus is on the revitalization and modernization of major airports nationwide. Through targeted investments and infrastructure upgrades, major airports will undergo comprehensive refurbishment, including improvement in terminal facilities, runway expansions, and the implementation of cutting-edge technologies to enhance safety and operational efficiency.”
For agricultural infrastructure, the focus includes developing robust networks like storage facilities and irrigation systems.
In port revitalisation, the goal is to modernise facilities and attract investments to enhance Nigeria’s regional trade hub status.
“By modernizing port facilities and implementing advanced monitoring systems, the goal is to optimize efficiency, attract investments, and bolster Nigeria’s position as a regional trade hub,” the statement read.
Key road projects like Lagos-Calabar Coastal Road aim to enhance connectivity and stimulate economic growth.
Rail projects like Lagos-Kano and Eastern lines will modernise transportation networks for speed and reliability.
President Tinubu’s approval of the RHIDF absorbs the PIDF, expediting project delivery for Nigerians’ benefit.
Projects funded under the RHIDF will have a national spread, reflecting the commitment to equitable development.
Aviation
ICAO Aviation security audit team debriefs Nigeria, indicates strong outing
The Team Lead of ICAO Security Audit Programme, Callum Vine, announced Nigeria’s strong performance during a debrief after its Audit.
Nigeria recently concluded the International Civil Aviation Organization (ICAO) Security Audit Programme the continuous Monitoring Approach (USAP-CMA) according to a statement emanating from Director, Public Affairs and Consumer Protection, FAAN, Obiageli Orah.
The USAP-CMA aims to improve aviation security compliance by analysing Member States’ performance and implementation of security standards. It focuses on Annex 17: Security Standards and Annex 9: facilitation compliance, along with associated procedures and security practices.
The event held at NCAA Headquarters saw Vine praise Nigeria’s robust policies and agencies, acknowledging their speed in addressing identified deficiencies without complaints.
He mentioned that the full audit report would be available within 60 days, followed by a 30-day period for comments.
FAAN’s Managing Director, Mrs. Olubunmi Kuku, affirmed using the audit results as a roadmap for continuous improvement.
She urged stakeholders to collaborate closely, share best practices, and uphold the highest security standards in the industry.
The debrief was attended by Dr. Emmanuel Meribole, representing the Minister, and Captain Chris Najomo, Acting Director General of NCAA.
Aviation
Arik Air receives Best Sustainable Airline Company award
Arik Air has bagged the award for Best Sustainable Airline of the Year, 2024 by the World Quality Alliance and Quality Standards Journal.
The airline’s Public Relations and Communications Manager, Mr Adebanji Ola, disclosed this in a statement made available to newsmen in Lagos.
Ola said the award was presented to the airline at the National Quality Summit 2024 held on March 22 in Abuja.
According to Ola, the Award General Committee of the National Quality Order of Merit, said the award was meant to celebrate leadership innovations and creativity in quality management.
Ola noted that Dr Ovie Shaka, Vice Chairman, Organising Committee of the National Quality Order of Merit Awards 2024, explained that the award was aimed at identifying, recognising and rewarding companies.
“The award also aims at rewarding personalities and products that apply quality assurance culture and quality management best practices.”
He said the award was presented by Stanley Ohenhen, on behalf of the Organising Committee and received by Arik Air’s Director of Safety, Capt. Jide Bakare.
Ola quoted Arik Air’s Chief Executive Officer, Capt. Roy Ilegbodu, as saying that the award is another testament of the airline’s fastidious adherence to operational safety standards.
Ilegbodu said Arik Air was committed to continual improvement of the management system and operational performance.
Recall that Arik Air also won the 2023 Best In-flight Service Airline by the Nigerian Aviation (NIGAV) Award.
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