, Nairobi, Kenya, Nov 16 – Jambojet, the low cost brand of Kenya Airways, has reported a net profit of Sh57 million for the first six months ending September compared to a loss of Sh237 million during the same period last year.
Jambojet’s results show that for the period between April and September, the number of seats flown decreased by 6.6 percent while the number of passengers carried increased by 14pc resulting in an increase in load factor to 75pc versus 60pc last year.
“We are very proud of these results. I’m delighted that after the startup losses during our first six months in 2014, we have now achieved a healthy growth margin during the first six months of this year. Due to our low cost model, we are able to offer very affordable fares and show a positive result at the same time,” said Jambojet CEO William Hondius.
The Kenyan Shilling depreciated against the dollar by 13pc compared to the same period in 2014 as fuel costs decreased by 53pc. The combination of the lower fuel cost and the stronger dollar resulted in a loss of Sh56 million.
Jambojet has seen solid progress in growth, increasing its daily flights to Eldoret by 50pc, each way, and now flies three times daily to Eldoret, except Sundays when it has two flights a day.
“Our introduction of the two Bombardier Q400 aircraft made it possible to add new routes resulting in an increase in customers. We now have more work and opportunity ahead to ensure more Kenyans can access affordable flights as we continue to execute our long-term plan,” added Hondius.
Jambojet’s commercial initiatives continue to gain traction with the recent completion of the runway extension at Ukunda Airport by Kenya Airports Authority which will help boost business and tourism in the coastal region. Jambojet will now be able to fly close to full capacity on its Bombardier Q400 aircraft which carries 78 passengers.
Since introducing flights to Ukunda, passenger numbers have more than doubled with an all-time high in August this year of 10,800, putting the carrier on the right trajectory to stem the erosion in operating revenues by end of the financial year.
Jambojet’s profits show that the low cost model works in Kenya and that travellers understand and have embraced the model. Since inception in April last year, about 30pc of the carriers passengers are first time flyers.
Jambojet now holds a 35pc market share in the Kenyan domestic market.