Jambojet reports first year loss in the millions

News from Nairobi confirmed lingering speculation that Kenya Airways’ low-cost subsidiary Jambojet has posted a loss for their first full year of operation.

Operating a fleet of mixed jets and turboprops, B737-300s and Bombardier Q400s, Jambojet presently flies from Nairobi to Mombasa, Eldoret, Kisumu, and also to Lamu, Malindi, and Ukunda.

The number of passengers carried during the first year reached just over 480,000, contributing to revenues of over 2.6 billion Kenya shillings. No information could be obtained in regard of load factors, however, which for a low-cost airline constitute a crucial element in reaching the breakeven point and eventually turning a profit.

While the airline was also designated by the Kenya Civil Aviation Authority to commence flights to as many as 9 regional destinations, Jambojet has yet to spread its wings beyond Kenya’s airspace, as it clearly concentrated to first make an impact on domestic routes.

It is generally expected that the financial results of the second financial year will be better now that the airline has established itself on key routes as a low-cost alternative to full-service airlines and with the potential to launch extra flights to key regional destinations.