Rwanda’s flag carrier, RwandAir, saw remarkable growth last year, enabling the airline to reduce its fiscal risks.
RwandAir CEO Yvonne Makolo said that the airline has seen an exceptional amount of growth with figures running into billions of Rwandan Francs (RWF).
IMPROVED FINANCIAL STANDING
According to Rwanda’s Fiscal Risk Statement (FRS) for the 2024/2025 financial year, RwandAir has reduced its fiscal risks. It has achieved this by improving its revenues.
This is indeed the Rwandan Government’s 5th Fiscal Risk Statement, produced by the Ministry of Finance and Economic Planning (MINECOFIN).
The statement outlines risks having a fiscal impact, as well as the measures the Rwandan government is using to mitigate these impacts.
INCREASED REVENUE
The report showed that RwandAir saw a significant increase in its 2023 revenues, compared with 2022.
In fact, revenue increased by 82 percent to RWF 620.6 billion in 2023. This is up from RWF 341 billion in 2022.
RWANDAIR GROWTH FACTORS
RwandAir’s growth has been attributed to three key factors.
These include increased tourism flows, growing cargo operations and higher numbers of transit passengers.
GROWTH IN TOURIST FLOWS
Rwanda has seen increased numbers of tourist visitors coming to the country in 2023.
In fact, more than 1.4 million tourists visited Rwanda last year, according to the New Times.
“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,” Makolo said.
RWANDAIR CARGO GROWTH
RwandAir also reported growth in its cargo traffic. The airline operates an extensive cargo network, which is proving to be profitable.
“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 the return,” Makolo said.
The Rwandan national carrier also launched two new cargo routes. Both of which are showing potential.
“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,” she explained.
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BECOMING AN AVIATION HUB
Makolo said that Kigali aims to become an important aviation hub on the African continent.
She said that the new Bugesera International Airport and the airline’s growth should help Rwanda to achieve this.
“We are committed to becoming 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.” Makolo stated.
KIGALI: A TRANSIT HUB
As RwandAir develops its Kigali hub, its revenue has increased with a significant rise in transit traffic.
“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.” Makolo stated.
GROWTH OF TRANSIT TRAFFIC FOR RWANDAIR
Makolo said that RwandAir is now carrying large numbers of transit passengers.
In fact, more than half of the airline’s passengers are transiting through Kigali en route to other destinations served in RwandAir’s route network.
“Now, over 60% 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 said.
