RwandAir (WB, Kigali) aims to double its fleet within five years to sustain an 82% revenue surge in 2023, attributed to a tourism boom, investment in cargo, and a growing hub in Kigali, CEO Yvonne Makolo has told The New Times newspaper.
She was commenting on the airline's revenues of RWF620.6 billion Rwandan francs (USD461 million) in 2023 compared to RWF341 billion (USD253 million) in 2022 reflected in the Rwanda Fiscal Risk Statement (FRS) for the financial year 2023-24, published by the Ministry of Finance and Economic Planning (MINECOFIN). It highlights the airline recovery since Covid-19 when revenues slumped to RWF270 billion (USD200 million) in 2021, following RWF300 billion (USD223 million) in 2020 and RWF334 billion (USD248 million) before the pandemic in 2019.
Government grants during this period (2019 to 2023) totalled RWF745.3 billion (USD555 million), steadily increasing from RWF131 billion (USD98 million) in 2019, RWF132 billion (USD98 million) in 2020, RWF146 billion (USD108 million) in 2021, RWF144 billion (USD107 million) in 2022, and RWF192.3 (USD143 million) in 2023.
According to the report, the Rwandan state guaranteed RWF40.6 billion (USD30.1 million) external debt for RwandAir in the year ending December 2023, while the airline's non-guaranteed debt stock for the year stood at RWF62.5 billion (USD46.3 million).
Makolo told The New Times: "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".
According to the ch-aviation fleets module, RwandAir operates a mixed fleet of 14 aircraft, including three A330 widebodies (two A330-200 and one A330-300), six B737 passenger narrowbodies (one B737-700 and five B737-800s), one B737-800(SF) freighter, and a regional fleet comprising two CRJ900 jets and two DHC-8-Q400 turboprops. As previously announced, RwandAir aims to simplify the fleet with the B737-700 and the two CRJ900s due for retirement. It also looks to grow its widebody fleet.
Makolo indicated that fleet investment would particularly focus on cargo growth. "Earlier this year, RwandAir launched two new cargo routes to Dubai World Central and Djibouti with the hope of announcing many more in the future with some new aircraft deliveries to match this growth." She previously indicated that a widebody freighter, likely an A330, was under evaluation.
She said investing in cargo is a major priority for the airline, in line with Rwanda's broader strategy to enhance trade and global connectivity. An expanded cargo network would enable the airline to export fresh produce to Europe, the Middle East, and Africa while facilitating the import of essential goods like mechanical parts and pharmaceuticals.
Makolo previously told ch-aviation that the airline's fleet decisions would align with the fleet strategy of its new 49% equity partner Qatar Airways (QR, Doha Hamad International).
Makolo said RwandAir also aims to expand its passenger flight route network to tap into new markets, reflecting its commitment to investment and enhancing business partnerships. In addition to its intra-African services, she said the airline plans to explore new opportunities to boost travel, tourism, and trade as part of its strategic growth plan.
She underscored RwandAir's role in boosting tourism, contributing to Rwanda's record 1.4 million tourists in 2023, nearly three times the number in 2021. Kigali has also become a leading conference destination in Africa, ranking second after Cape Town in South Africa.
With Kigali's growth as an East African hub, the airline's revenue boost is also attributed to increased transit traffic. According to Makolo, more than 60% of RwandAir's traffic derives from transit passengers.
