Kenya Airways operating performance; 1st QTR – Apr-2010 to Jun-2010

The company put into the market place capacity totalling 2,814m seat kilometres which was at par with last year's level notwithstanding the incremental destinations launched in the second half of 2009. This follows the reduction of B777 operations in the current year because of scheduled maintenance plans which necessitated increased utilisation of smaller B767s into Thailand, China and Hong Kong.

Capacity offered into Europe remained unchanged compared to the same quarter of prior year. The Middle East, Far East and Asia regions registered a capacity decline of 8% despite the introduction of Muscat flights via Dubai flights largely due to the reduced B777 operations as already mentioned.

The Northern Africa region grew by 5% in capacity owing to the introduction of daily flights into Juba in Southern Sudan on the Embraer aircraft. Capacity availed into the East African region shrunk by 7% compared to last year because of increased utilisation of the Embraer on short haul sectors, and better synchronization of KQ schedules with that of Precision Air on both Tanzanian and Zanzibar connections.

The highest seat kilometre increase was registered in Southern Africa region. A 22% growth was due to additional frequencies into Johannesburg during the World Cup season together with the additions of N'Dola and Gaborone into the network. Capacity offered in the Central Africa region grew by 6% mainly from the successful launches of Malabo and Bangui via Douala and Kisangani connecting through Entebbe. The capacity into West Africa contracted by 9% driven by the freeing up of B767s from Lagos and Accra in order to operate long haul routes previously served by the B777s.

In the Domestic front, capacity remained largely flat compared to prior year because the additional frequencies offered to Mombasa were operated by the smaller Embraer aircraft.

Uptake of total production at 1,892m revenue passenger kilometres represents a 9% growth compared to last year while the total passenger tally, which closed on 666,658 increased by 4%. The growth underpins increased long haul customer travel made possible by better economic environment. The resulting average cabin factor improved from last year's level of 61.6% to 67.2%.

Cargo tonnage at 12,762 increased by 14% compared to last year's level emphasizing the improved business atmosphere.

Passenger uplift to Europe at 93,073 indicates a 16% year on year growth on the back of a stagnant capacity base resulting to 71.0% occupancy level which is 9.6 points higher.

In the Middle East, Far East and Asia regions passenger traffic increased by 13% against a capacity shortfall of 8%. The realised cabin factor of 73.6% was 10.9 points better than prior year's 62.7%.

Within Africa but excluding Kenya, total enplanements totalled 366,225 being a modest 3% growth compared to a similar capacity growth, thus the resultant passenger load factor of 60.9% remained flat on prior year's level.

Passengers uplifted within Kenya at 112,020 were 6% below prior year's level. The resulting cabin factor of 71.7% was lower than 75.5% achieved last year.