MBABANE – Eswatini Air recorded a 65 per cent increase in revenue during the first quarter of the 2026/27 financial year, underlining the airline’s continued commercial growth as it expands its regional footprint.
The impressive performance is contained in the first-quarter performance report of the Ministry of Public Works and Transport, which shows that the national carrier exceeded all its financial key performance indicators (KPIs) by between 7.5 and 12 per cent despite seasonal fluctuations affecting some operational targets. According to the report, the airline’s growth was driven by strong commercial performance across its network, supported by improved yields, effective marketing strategies and continued network optimisation. “The airline remains on a positive growth trajectory, and its credibility in the market is increasing,” the report states. The launch of the Lusaka route further strengthened Eswatini Air’s position in the regional market, while new and revised services introduced during the quarter contributed to cost reduction initiatives. Government expects these strategic adjustments to improve network efficiency and support the airline’s long-term sustainability.
Compared with the corresponding period last year, the airline recorded significant improvements across all financial performance indicators. Revenue and Revenue per Available Seat Kilometre (RASK) were the standout performers, both increasing by more than 60 per cent. Operationally, Eswatini Air maintained high service standards despite lower passenger demand on some routes during May and June. During the quarter, the airline scheduled 553 flights and successfully operated 547, achieving a schedule completion rate of 99 per cent. The slight reduction in schedule integrity was attributed to the temporary consolidation of the Cape Town and Durban routes during the low-demand period. The airline also operated four charter flights during the quarter. Its Operations Control Centre (OCC), which coordinates flight operations, maintenance, radio communications and ramp activities, helped maintain operational stability throughout the reporting period. As a result, Eswatini Air achieved an on-time performance rate of 94.35 per cent, with disruptions kept to a minimum through proactive planning and effective operational responses. Aircraft reliability also remained strong. According to the report, the airline maintained 100 per cent fleet serviceability throughout the quarter after successfully completing all scheduled maintenance in compliance with aviation standards and recommended practices. Spare parts pooling agreements remained fully operational, while procurement of additional on-site spares continued.
The airline is also upgrading its stores facility to meet International Air Transport Association Operational Safety Audit (IOSA) requirements. Security standards were similarly maintained. The report indicates that there were no incidents of unlawful interference involving any of the corporation’s assets during the reporting period. All security equipment, including X-ray machines and access control systems, remained fully operational, while the airline continued to comply with the National Civil Aviation Security Programme. In addition, awareness training on the transportation of deportees was conducted for officials from the Ministry of Home Affairs. Eswatini Air’s ground operations division continued to provide ground handling services for all scheduled airline flights, as well as non-scheduled aircraft operating into the country. Meanwhile, parent company Royal Eswatini National Airways Corporation (RENAC) remains the country’s sole authorised provider of ground handling services and recently concluded a new ground handling agreement with another airline, which will take effect on August 1, 2026.
The corporation’s travel subsidiary, the Royal Eswatini Travel Agency (RETA), experienced a different performance during the quarter. Business volumes declined by approximately 32 per cent compared with the same period last year, largely because of reduced government travel. However, the agency made significant progress in diversifying its customer base. Government business, which previously accounted for more than 90 per cent of bookings, declined to 72 per cent, while the corporate market expanded substantially from 3.7 per cent to 26 per cent year-on-year. Retail business also recorded growth following intensified social media and marketing campaigns. The report notes that this shift reflects the agency’s growing penetration of the private sector and positions the business for more sustainable long-term growth. Beyond airline operations, RENAC continued strengthening its procurement, governance and internal control systems during the quarter. The corporation issued four tenders, awarded three contracts worth E3.48 million and processed 866 purchase orders valued at E43.15 million. Internal audit activities included updating the audit charter to align with the King V Code of Corporate Governance, reviewing strategic risk registers, conducting audit engagements and completing year-end inventory counts across the group’s operations. Despite the airline’s strong operational and financial performance, RENAC continues to face funding pressures. For the 2026/27 financial year, the corporation requested a government budget allocation of E874.5 million but received approval for only E555 million, representing 63 per cent of the requested funding.
To bridge the gap, RENAC submitted a supplementary budget request of E320 million, noting that E703.5 million of its funding requirement is recoverable through cost-recovery arrangements.
By the end of the first quarter, the corporation had received E117 million from government, leaving E21.75 million of the quarterly allocation still outstanding.
Nevertheless, the report indicates that Eswatini Air remains on a solid growth trajectory, with management confident that continued network optimisation, route expansion and operational efficiencies will further strengthen the airline’s performance and competitiveness in the regional aviation market.
