Kenya Airways bullish to fly back into profits by 2024

Kenya Airways, the national carrier of Kenya, is aiming to soar back into profitability by 2024, as it seeks to procure more aircraft and ramp up capacity to meet the growing regional demand. In an exclusive interview with CNBC Africa, Julius Thairu, a key figure at the airline, expressed optimism about Kenya Airways' prospects for transitioning to profits after years of being in a loss-making territory. Thairu highlighted the significant potential in the African aviation market, emphasizing the continent's increasing air travel demand. He pointed out that by 2040, air travel in Africa is projected to double to around 300 million passengers from the current 150 million. Thairu emphasized that air travel is the most efficient way to connect the vast African continent due to its sheer size and the emergence of a global-thinking young population. One of the key themes discussed in the interview was the importance of collaboration among African airlines. Thairu emphasized the need for airlines to shift from viewing each other as competitors to partners. He cited an example of meeting with Rwanda's CEO to explore cooperation opportunities for mutual benefit and to enhance the overall aviation industry in Africa. Furthermore, Thairu emphasized the airline's customer-centric approach, focusing on delivering excellent customer experience and personalized rewards through initiatives like the Asante Rewards loyalty program and advanced real-time communication services. Key Point 1: Focus on Intra-Africa Travel and Collaboration Thairu highlighted the importance of intra-Africa travel and the initiatives like Open Skies and the African Continental Free Trade Area in driving connectivity and trade within the continent. He underlined the strategic significance of the East African markets as a focus area for Kenya Airways, viewing them as extended home markets with growth opportunities. Key Point 2: Diversification and Cargo Business In line with its strategy to diversify revenue streams, Kenya Airways is exploring the potential of its cargo business as a growth frontier. Thairu outlined plans to increase revenue share from cargo to about 20% in the medium term and mentioned innovative approaches such as drone technology to enhance the cargo business's efficiency. Key Point 3: Financial Challenges and Sustainable Growth Despite the airline's ongoing financial challenges and the government's decision to halt further bailout funds, Thairu expressed confidence in Kenya Airways' turnaround plan. He highlighted the airline's focus on operational profitability and smart capacity expansion through leasing aircraft and strategic partnerships with global carriers. In conclusion, Thairu reiterated Kenya Airways' commitment to smart, agile growth strategies, leveraging partnerships, and customer-centric initiatives to navigate the competitive aviation landscape and achieve sustainable profitability by 2024.