Jambojet CEO talks 2022 performance, AfCFTA & aviation outlook

Jambo Jet, a subsidiary of Kenya Airways, has navigated through the challenges of the aviation industry in 2022, despite facing a scarcity of foreign exchange. In an interview with CNBC Africa, Karanja Ndengwa, the CEO of Jambojet, highlighted that the main challenge experienced especially last year and also beginning of this year is scarcity of forex. The airline reported a loss of about 861 million, with a significant portion attributed to forex fluctuations and an increase in fuel prices. However, Jambo Jet managed to achieve an operating profit of 1.7 billion, showcasing resilience in the face of economic challenges. Ndengwa expressed optimism for the airline's performance in 2023, aiming to reach 1.2 million passengers and increase revenues to 9.5 billion Kenyan shillings. This positive outlook is fueled by the airline's strategic approach to managing costs, increasing fares by 6% to offset forex challenges, and exploring new regional routes while consolidating existing ones. Despite the macroeconomic uncertainties such as fuel price hikes and climate change factors, Jambo Jet remains confident in its ability to adapt and thrive in a changing industry landscape. One of the key factors contributing to Jambo Jet's resilience is its focus on diversification, particularly in the area of cargo transportation. The airline ventured into the cargo market in 2021 and has seen a steady increase in volume, with plans to expand further in the future. By capitalizing on domestic and regional routes for cargo transportation, Jambo Jet has been able to mitigate the impact of the pandemic on its operations. Additionally, the airline's collaboration with Kenya Airways has provided synergies in passenger transit, further enhancing its market position. As the aviation industry continues to evolve, Jambo Jet's strategic focus on operational efficiency and revenue growth positions it well for sustained success. In line with global sustainability initiatives, Jambo Jet is proactive in its environmental conservation efforts. The airline aims to achieve net zero carbon emissions by 2030 through a comprehensive tree-planting program and the adoption of fuel-efficient technologies. By planting two million trees over the next decade and reducing fuel burn through innovative practices, Jambo Jet is aligning its business goals with environmental stewardship. This commitment to sustainability underscores the airline's long-term vision for responsible growth and environmental preservation. Looking ahead, Jambo Jet remains committed to expanding its market reach regionally while ensuring operational profitability. The airline's plans to reopen routes to Entebbe and Kigali demonstrate its strategic intent to capitalize on regional travel demand. With a focus on enhancing connectivity, improving operational efficiency, and embracing sustainability, Jambo Jet is well positioned to soar to new heights in the African aviation industry.