This archive report was first published on 27 June 2020.
Kenya Airways is bracing for a significant financial hit as the COVID-19 pandemic continues to affect the aviation industry. According to the airline's CEO, Allan Kilavuka, they have lost over Sh10 billion in revenue since January, with a predicted loss of up to Sh50 billion by December.
Speaking to journalists, Kilavuka stated that their estimates indicate a loss of around USD 100 million (Sh10 billion) since January, with a projected loss of USD 400 million to 500 million (Sh40-50 billion) by the end of the year.
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 appealed to the government to open the skies to facilitate the resumption of flights, which will help revive revenues generated from airline-related businesses.
Resuming flights will also reduce the financial burden on the tourism and hospitality sector, allow tourists to visit the country, and secure jobs for many Kenyans, according to Kilavuka.
However, the airline's CEO has ruled out the possibility of adjusting sitting capacity in its aircraft to facilitate social distancing, citing the lack of scientific proof that there is an extra risk of transmission and the uneconomical nature of reducing seats.
As of July 26, Kenya had reported 132 virus-related deaths, with 5,384 documented infections since March 14 and 1,857 patients having recovered since April 1.
