RwandAir plans to expand its fleet size by 100% over the next five years to support an impressive 82% increase in revenue for 2023, driven by a surge in tourism, investments in cargo services, and the development of Kigali as a key hub, as stated by CEO Yvonne Makolo in an interview with The New Times newspaper.
Makolo highlighted that the airline’s revenue reached
RWF620.6 billion (USD461 million) in 2023, a significant rise from RWF341
billion (USD253 million) in 2022, as detailed in the Rwanda Fiscal Risk
Statement (FRS) for the financial year 2023-24, released by the Ministry of
Finance and Economic Planning (MINECOFIN). This growth marks a recovery for the
airline following the downturn caused by the Covid-19 pandemic, which saw
revenues drop to RWF270 billion (USD200 million) in 2021, down from RWF300
billion (USD223 million) in 2020 and RWF334 billion (USD248 million) in 2019.
During the period from 2019 to 2023, government support
amounted to RWF745.3 billion (USD555 million), with annual grants increasing
from RWF131 billion (USD98 million) in 2019 to RWF192.3 billion (USD143
million) in 2023.
The report also indicates that the Rwandan government
guaranteed RWF40.6 billion (USD30.1 million) in external debt for RwandAir for
the year ending December 2023, while the airline's non-guaranteed debt was
recorded at RWF62.5 billion (USD46.3 million).
In her remarks to The New Times, Makolo stated, “We are
dedicated to establishing ourselves as a significant hub in Africa,
facilitating connections throughout the continent. Our growth will be primarily
organic, and we anticipate doubling our fleet in the next five years to enhance
our short- and long-haul service offerings.”
As reported by the ch-aviation fleets module, RwandAir
operates a diverse fleet consisting of 14 aircraft. This includes three A330
widebody models (two A330-200s and one A330-300), six B737 narrowbody passenger
aircraft (one B737-700 and five B737-800s), a B737-800(SF) freighter, and a
regional fleet made up of two CRJ900 jets and two DHC-8-Q400 turboprops.
RwandAir has previously announced plans to streamline its fleet, with the
B737-700 and the two CRJ900s scheduled for retirement, while also aiming to expand
its widebody fleet.
Makolo emphasized that the airline's investment strategy
will prioritize cargo expansion. Earlier this year, RwandAir initiated two new
cargo routes to Dubai World Central and Djibouti, with intentions to announce
additional routes in the future, supported by new aircraft deliveries. She
mentioned that a widebody freighter, likely an A330, is currently under
consideration.
Investing in cargo services is a key focus for the airline,
aligning with Rwanda’s broader objectives to enhance trade and global
connectivity. An expanded cargo network would facilitate the export of fresh
produce to Europe, the Middle East, and Africa, while also enabling the import
of essential items such as mechanical components and pharmaceuticals.
Makolo has previously stated to ch-aviation that the
airline’s fleet decisions will be in accordance with the fleet strategy of its
new 49% equity partner, Qatar Airways (QR, Doha Hamad International).
Additionally, RwandAir aims to broaden its passenger flight
network to access new markets, demonstrating its commitment to investment and
strengthening business partnerships. Beyond its intra-African services, the
airline plans to seek new opportunities to enhance travel, tourism, and trade
as part of its strategic growth initiatives.
She highlighted the significant impact of RwandAir on
enhancing tourism, which has led to a remarkable influx of 1.4 million visitors
to Rwanda in 2023, nearly tripling the figures from 2021. Additionally, Kigali
has emerged as a premier conference destination in Africa, now holding the
second position after Cape Town, South Africa.
As Kigali continues to develop as a central hub in East
Africa, the airline's revenue growth is also linked to a rise in transit
traffic. Makolo noted that over 60% of RwandAir's passenger traffic comes from
transit travelers.
