This archive report was first published on 27 June 2020.
Kenya Airways, the country's national carrier, is facing a significant financial crisis due to the COVID-19 pandemic. According to the airline's CEO, Allan Kilavuka, Kenya Airways has lost over Sh10 billion in revenue since January, with a projected loss of up to Sh50 billion by December.
Speaking to journalists, Kilavuka stated that the airline is ready to resume flights by July to mitigate further losses associated with the global pandemic. He estimated that since January, the airline has lost around USD 100 million (Sh10 billion), and by the end of the year, it will lose USD 400 million to 500 million (Sh40-50 billion).
Kenya Airways posted a net loss of Sh12.98 billion for the year that ended in December 2019, compared to the Sh7.558 billion loss posted a year earlier. The airline's Chairperson, Michael Joseph, has pleaded with the government to open the skies to facilitate the resumption of flights, which will revive revenues generated from airline-related businesses.
The airline's CEO emphasized that resuming flights will reduce the financial burden on the tourism and hospitality sector, allow tourists to visit the country, and secure jobs for many Kenyans. He also noted that the airline has suspended its expansion drive and will not launch new routes for the next two years due to financial inadequacies.
Upon resuming flight operations, Kenya Airways will insist on the wearing of masks by passengers and will not adjust the seating capacity in its aircraft to facilitate social distancing, citing the uneconomical viability of such a move.
