Kenya Airways Rises Most in Two Weeks as Cargo, Passenger Volumes Increase

Kenya Airways Ltd., sub-Saharan Africa’s third-biggest carrier, rose the most more than two weeks after saying cargo and passenger volumes in the three months through June advanced.

The stock climbed 2.25 shillings, or 4.9 percent, to 48 shillings as of 10:49 a.m. in Nairobi, the biggest intraday gain since July 14.

Cargo volumes increased 14 percent to 12,762 metric tons in the quarter to June, while passenger traffic to Europe rose 16 percent, the Nairobi-based company said in an e-mailed statement today. Passenger traffic to Africa and the Middle East climbed 13 percent, while volumes within Kenya fell 6 percent.

“The total passenger tally, which closed on 666,658, increased by 4 percent,” the company said. “The growth underpins increased long-haul customer travel made possible by a better economic environment,” it said. “The resulting average cabin factor improved from last year’s level of 61.6 percent to 67.2 percent.” Cabin factor is the number of passengers to passenger capacity for a particular airplane.

Growth of cargo tonnage is an indication of “the improved business atmosphere,” it said.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

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