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KQ Cargo business forecasts better 2023
The air cargo business at East Africa’s second largest carrier, Kenya Airways is poised for a better year as freight business continued with an upward tick. CNBC Africa had an exclusive interview with Peter Musola, the head of Commercial Cargo at Kenya Airways on what the road ahead looks like as the airline navigates through the turbulence.
Thu, 02 Feb 2023 15:30:46 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Kenya Airways' cargo business has experienced a significant rebound, contributing over 30% to the airline's revenue and leveraging the passenger fleet for cargo operations.
- The airline is set to introduce two Boeing 737-800 freighters into its fleet, expanding its cargo capabilities for mid-haul routes and exploring new markets through strategic partnerships.
- The impact of e-commerce on the air cargo industry is driving Kenya Airways to launch an e-commerce platform, providing customers with a seamless purchasing and delivery experience to tap into the growing trend of online shopping and logistics.
Kenya Airways' cargo business is on the upswing as the airline forecasts a better year ahead in 2023. The air cargo sector has been a saving grace for the airline amid the challenges posed by the COVID-19 pandemic, with freight operations seeing a significant rebound. In an exclusive interview with CNBC Africa, Peter Musola, the head of Commercial Cargo at Kenya Airways, shed light on the positive outlook for the airline's cargo business. The key theme of the conversation revolved around the resilience and growth of Kenya Airways' cargo operations, with a focus on the introduction of new freighters, expansion into new markets, and the impact of e-commerce on the air cargo industry. The interview highlighted the airline's success in leveraging its passenger fleet for cargo operations, particularly on routes like London, where daily frequencies have doubled post-pandemic. Musola emphasized the importance of cargo business to Kenya Airways, citing its contribution of over 30% to the airline's revenue. He also discussed the impact of the pilots' strike on the business and the subsequent recovery, attributing the airline's resilience to strong leadership and teamwork. Looking ahead to 2023, Musola shared exciting developments, including the introduction of two Boeing 737-800 freighters into the fleet, which will enhance the airline's cargo capabilities for mid-haul routes from its Nairobi hub. Additionally, partnerships with South African Airways and expansion into new markets like Sharjah, Abidjan, and Dakar were highlighted as key growth strategies for the airline's cargo business. The interview also delved into the rise of e-commerce and its influence on the air cargo industry. Musola discussed the acceleration of digital platforms for air cargo, emphasizing the need for seamless data interchange and the launch of an e-commerce platform for KQ cargo. The airline is in the final stages of rolling out its e-commerce product, which will offer customers a seamless purchasing and delivery experience, tapping into the growing trend of online shopping and logistics. Overall, Kenya Airways is set to soar to new heights in 2023, driven by strategic expansion, digital transformation, and a resilient approach to navigating the challenges in the aviation industry. With a strong focus on cargo operations and the launch of innovative solutions like the e-commerce platform, the airline is well-positioned to capitalize on the evolving landscape of air freight and drive growth in the coming year.
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