Precision Air (PW, Dar es Salaam) is now on an upward trajectory following a steady decline in operating losses post-COVID-19, according to CEO Patrick Mwanri.
In an interview with Tanzania's The Citizen newspaper, Mwanri expressed optimism about the regional airline's future, citing improvements in operational efficiency, cost optimisation, and customer service.
He said Precision Air was also focusing on fleet and route rationalisation, maximising aircraft utilisation to improve operational efficiency, adopting technology to boost productivity and streamline processes, and expanding into underserved markets. With the support of ongoing government infrastructure development, the airline is well-positioned for a strong recovery and growth, he opined.
"Precision Air is poised for a strong turnaround, and we are confident that our strategic initiatives will drive the company back to sustainable growth soon," he said.
Mwanri sees significant untapped potential in the Tanzanian aviation market, with Precision Air well-positioned to capitalise on it. The carrier's expansion into new routes, such as to Iringa, underscore its commitment to serving underserved markets, he said.
"We are also strengthening our training centre and maintenance facilities, not only to improve service quality but also to create additional revenue streams. With these measures in place, we are optimistic about achieving our turnaround goals sooner than anticipated," he declared.
Improving financials
In 2023, Precision Air posted an operating loss of TZS2.9 billion shillings (USD1.1 million), a sharp decline from the TZS25.6 billion (USD9.6 million) profit recorded in 2022. However, this loss was smaller than the loss of TZS28.9 billion (USD10.9 million) in 2020.
Passenger numbers rose from 470,624 in 2018 to 481,981 in 2023, recovering from a dip of 245,875 in 2020 due to the pandemic. The airline's load factors improved from 53% in 2018 to 65% in 2023. Revenue also grew by 38% from TZS97.9 billion (USD37 million) in 2018 to TZS134.7 billion (USD51 million) in 2023.
Fleet status
In November 2024, Mwanri told ch-aviation that Precision Air was focusing on stabilising its fleet and operations after the challenges of the pandemic, supply chain disruptions, and rising operational costs. He said it was taking a cautious approach to mitigating financial risks and plans to expand its fleet once stability is achieved, as part of a five-year strategy.
The focus is currently on stabilising the airline's ATR - Avions de Transport Régional turboprop fleet of five ATR72-500s, two ATR42-600s, and one ATR42-500. It aims to introduce jet aircraft in the future for routes where they can perform better, but only after stabilising its operations.
Mwanri said he expects to break even operationally by 2026, with some months already showing a profit despite the ongoing challenges. According to ch-aviation schedules data, Precision Air serves 13 domestic destinations plus Nairobi Jomo Kenyatta (Kenya), and Moroni International and Anjouan (Comoros) regionally.
