Kenya Airways CEO: “There Is Nothing Lucrative About Flying To New York”

I don’t want to say “I told you so,” but…

Kenya Airways’ Nairobi to New York flight

Kenya Airways launched a daily nonstop flight between New York and Nairobi in late October 2018 (I reviewed the inaugural flight from New York to Nairobi). This was an airline that was on the verge of liquidation in 2017, but as is often the case, they let their ambitions get ahead of their business sense.

Inexplicably, the airline decided to immediately launch daily flights in the market. This is the first nonstop flight between New York and East Africa, so to operate that flight daily from  day one makes no sense. They’d be much better off starting with a few flights per week, and then gradually increasing service as demand picks up.

Not surprisingly, the airline quickly backtracked on that, and permanently reduced frequencies to New York.

Nonetheless this was a huge point of pride for the country, and the route was constantly referred to as a game changer (like over and over and over, as you’ll see in the below video).

How is Kenya Airways’ New York flight doing?

Kenya Airways just celebrated their six month anniversary of operating the route, so how’s the route doing? Well, I think this statement from Kenya Airways CEO Sebastian Mikosz tells you everything you need to know:

“I do not consider it to be a lucrative route. There is nothing lucrative about flying to New York.”

Nonetheless Kenya Airways seems committed to keeping the route, at least for now:

“The route is necessary but difficult. It is performing in the range that we expected. It is feeding our African network. It positions us differently.”

The airline just reported a roughly 75 million USD loss for 2018, which they attribute largely to volatile fuel prices, as the airline has seen fuel expenditure increase significantly. The airline hasn’t provided a more detailed summary of the financial performance of the JFK route, though I think it’s safe to assume it’s losing money.

Bottom line

It’s no surprise at all that Kenya Airways’ New York flight isn’t lucrative for them. I suspect the airline will keep the route around for prestige reasons and for general business ties, as a way of encouraging US tourism and investment in Kenya.

At least they’ll keep it around until Kenya Airways’ management decides they can no longer keep losing money.

This route has been such a huge point of pride for the airline from the beginning, and it’s sad to see it’s not making money. But like I said, the fact that they decided to start with daily flights suggests to me that they were never really realistic about it.

Conversations (23)
The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.
Comment as a member

Membership is free and takes no more information than commenting as a guest. Earn status points for good contributions, and see fewer ads as your status grows.

Type your response here.

If you'd like to participate in the discussion, please adhere to our commenting guidelines. Anyone can comment, and your email address will not be published. Register to save your unique username and earn special OMAAT reputation perks!

  1. Loading comments…
Recent Comments
The latest from the OMAAT community.

The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

KK Member

KQ’s flights to NYC is almost filled with UN delegates. Nairobi is UN’s regional HQ for Africa. It’s a necessary connection for NGO and other diplomatic passengers. I was caught in their downshift from daily to 4x weekly schedule change. It was not fun because on the way back, they interlined me from the NBO-JFK nonstop to NBO-LHR on KQ and on LHR-JFK on AA. Needless to say, the ground staff held my luggage for about 30 hrs in NBO waiting for the next nonstop. They should have travelled with me via LHR.

0
‼ 0
Traveldude67 Guest

Winter is coming...for KA. It's a game of thrones changer!!

0
‼ 0
AndrewM Guest

North American routes from Africa is currently dominated by Ethiopian Airlines. KA has to do something to stop the bleeding. Even it means loss of revenue for a little while. They could succeed if managment put their act together..there is a room for both airlines and as we all know competition is good for flying public!

0
‼ 0
Sudeep New Member

Whatever serious discussions you good folks intend to have, you cannot ignore the fact that........ ....... THAT VIDEO IS STILL A GAME CHANGER

0
‼ 0
ernest Alleva Member

Its like dealing with 10 yr old kids.

0
‼ 0

Save posts to read later

Saving posts is a member feature. Become an OMAAT member to build a reading list you can come back to from any device.

Become a member
Meet Ben Schlappig, OMAAT Founder
5,883,136 Miles Traveled

43,914,800 Words Written

47,187 Posts Published

Keep Exploring OMAAT