2Q 2013-14 (July-Sep 2013) seems rather muted compared to 2Q 2012-13. Reduced frequencies/capacity to many 'busy' destinations including London - which acts as feeder for Africa traffic - Mumbai and Delhi. These reductions are post-election reductions which means the hurt is real.
Capacity Utilization (PLF) seem to have risen but are they sufficient to offset lower passenger numbers & flights?
At least flights to the Far East (China) picked up where India dropped off. Dubai seems busy & Abu Dhabi is the new kid on the block EXCEPT there will be some cannibalism of Dubai. Etihad (not Emirates Oops! thanks @horton] uses KQ to feed its hub in Abu Dhabi so that is additional business BUT Emirates (via Abu Dhabi) also flies to London, Amsterdam, Mumbai, Delhi and Bangkok which eat into KQ's potential passenger base.
My conclusion based on limited information is that KQ may be on a recovery path but it is nothing to write home about.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett