Rwandair set for rapid expansion as 2023 revenues hit USD 458 million

September 3, 2024 in Business, Companies, Travel & Tourism by Editor

Flag carrier RwandAir registered an 80pc increase in revenues for 2023, grossing Rwf 620.6bn (USD458.5 million) for the year. Propelled by a surge in passenger traffic and the nascent cargo operation, the number represents an 82pc growth over 2022 when revenues were Rwf341bn (USD 251.9 million).

Quoting the fifth edition of the Rwandan Ministry of Finance and Economic Planning’s Fiscal Risk Statement FRS, The New Times daily reported today, that the year’s performance marked the turning of a corner from Covid 19 impacts, which saw annual revenues drop to Rwf 271bn in 2021 from a high of Rwf 334bn in 2019 and Rwf 300bn in 2020.

According to the finance ministry, the performance indicated a progressive reduction in the fiscal risk presented by the carrier as it relied more on its revenue to support operations. The FRS summarises the treasury’s exposure to fiscal risk and spells out the associated mitigation strategy.

Rwandair chief executive Yvonne Manzi Makolo attributed the turnaround to improved tourism performance and cargo. “Our recent growth is down to three key factors: Rwanda’s tourism boom, investment in cargo and our growing Kigali hub. IATA projections show demand for air travel tripling in the next 20 years. The growth potential is therefore enormous.” She is quoted as saying.

A daily service to London and connections to the Middle East, had seen transit traffic grow to 60pc of passengers flown. “While we commence the construction of our new international airport, the current hub in Kigali has grown to become a significant regional base since the pandemic. Now, over 60pc of our traffic comes from transit passengers. We have consequently increased our European frequencies as we successfully connect Africa to the world, beginning our daily flights from London in May 2024,” she explained.

To anchor the growth, Rwandair which currently operates 14 aircraft, plans to double the fleet over the next five years.

“The airline has become key to the government’s ambitious tourism plans; the country saw over 1.4 million tourists arrive in 2023, almost triple that of 2021. In addition to our traditional tourists visiting the national parks and cultural sites, Kigali is now the second-most popular city for conferences after Cape Town in Africa. This tourism growth is very much down to our connections,” Yvonne added.

Cargo will continue to be a major plank in the carrier’s investment and growth plans she says.

“Cargo growth is in line with the country’s strategy of opening Rwanda to the outside world through trade. Earlier this year, RwandAir launched two new cargo routes to Dubai and Djibouti with the hope of announcing many more in the future with some new aircraft deliveries to match this growth.”

“The extensive cargo network allows us to deliver fresh produce to Europe, the Middle East and Africa, and import vital goods such as mechanical parts and pharmaceuticals on return,” she added.

Makolo reaffirmed Rwanda’s determination to grow Kigali into a major African hub, “providing connections across our continent. While our growth will be organic, we expect to double our fleet over the next five years as we offer more convenient connections to our wide range of short- and long-haul services.”

Yvonne says RwandAir is expanding the route network with an eye on new growth markets, that can also support inward investment.

“In addition to our regular intra-African services, we are looking to expand into markets that generate growth across our continent. Exploring new commercial opportunities is part of a carefully controlled plan to drive travel, tourism, and trade,” she told The New Times.