This archive report was first published on 15 June 2020.
Kenya Airways is facing a revenue conundrum after passenger flights were grounded on March 22, leaving the airline to rely on cargo transportation as its only revenue stream.
The airline's latest annual report suggests that there is a reasonable expectation that flights could resume in the third quarter of the year, with business expected to start at very low capacity and gradually ramp up as travel bans are lifted and passenger confidence grows.
Discussions with key industry stakeholders are underway to ensure a safe return to passenger routes, with the airline expected to finance its resumption costs despite applying for a state bailout.
However, Treasury Cabinet Secretary Ukur Yatani has expressed skepticism about the state bailout plan, stating that it is a short-term fix that will not address the airline's deeper structural challenges.
Yatani noted that the requested Ksh7 billion bailout was intended to cover maintenance costs, staff salaries, and utility bills, but that the airline's woes go beyond the COVID-19 pandemic.
