RwandAir Aims to Double Fleet Size in Five Years as Revenue Soars
RwandAir, has shared ambitious plans to double its current fleet within the next five years, aiming to sustain the revenue growth it experienced in 2023. This comes as the airline reported significant gains, marking a substantial turnaround following the challenges posed by the Covid-19 pandemic.
According to the Rwanda Fiscal Risk Statement (FRS) for the 2024/25 financial year, RwandAir’s strategy to reduce fiscal risks is paying off. The report highlights the airline’s impressive revenue surge, which grew by 82% in 2023, reaching Rwf620.6 billion, up from Rwf341 billion in 2022. This growth is even more astounding considering the revenue decline during the pandemic, dropping from Rwf334 billion in 2019 to Rwf271 billion in 2021.
The FRS, produced by Rwanda’s Ministry of Finance and Economic Planning (MINECOFIN), outlines the fiscal risks faced by the government and the measures taken to mitigate them. For RwandAir, the recovery and growth in revenues emphasize the airline’s resilience and the effectiveness of its strategies.
Key Factors Driving Revenue Growth
RwandAir’s CEO, Yvonne Manzi Makolo, attributed the airline’s recent success to three main factors:
1: Rwanda’s booming tourism sector, increased investment in cargo operations, and the development of Kigali as a key hub.
“Since the pandemic, we have witnessed exceptional growth,” Makolo stated. “IATA projects that air travel demand will triple in the next 20 years, and we are positioning ourselves to tap into this potential. Our growth is driven by Rwanda’s tourism boom, our investment in cargo, and the expansion of our Kigali hub.”
RwandAir has played a key role in boosting Rwanda’s tourism industry, with its extensive network connecting Africa to the world. In 2023, Rwanda welcomed over 1.4 million tourists, nearly three times the number in 2021. Makolo noted that Kigali has become the second-most popular city for conferences in Africa, after Cape Town, thanks in part to RwandAir’s connections.
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2: In addition to tourism, RwandAir has significantly invested in its cargo operations, which has become a key priority for the airline.
“Cargo growth aligns with Rwanda’s strategy to open up to the world through trade,” Makolo explained. “We launched new cargo routes to Dubai and Djibouti earlier this year and plan to expand further with the arrival of new aircraft.”
The airline’s cargo network allows for the export of fresh produce to Europe, the Middle East, and Africa, while also facilitating the import of essential goods like mechanical parts and pharmaceuticals.
3: As RwandAir continues to develop its Kigali hub, transit traffic has become a major revenue driver, accounting for over 60% of the airline’s traffic.
“Our current hub in Kigali has grown significantly since the pandemic, and we have increased our European flight frequencies. In May 2024, we will start daily flights from London, further connecting Africa to the world,” Makolo added.
Looking ahead, RwandAir is committed to becoming a major African hub, with plans to double its fleet within five years. The airline currently operates 14 aircraft, including Boeing 737-800NGs, CRJ900NGs, Bombardier Q-400NGs, and Airbus A330s.
“Our expanding route network is constantly exploring new markets, reinforcing our commitment to driving travel, tourism, and trade,” Makolo concluded.