This archive report was first published on 27 June 2020.
Published on June 27, 2020, Kenya Airways (KQ) is facing a daunting financial challenge as the COVID-19 pandemic continues to wreak havoc on the tourism and travel industry.
The airline has already lost over Sh10 billion due to the pandemic, and its projected losses are set to rise steeply by the end of the year, with estimates ranging from Sh42.4 billion to Sh53 billion.
Speaking during the company's virtual annual general meeting, Chief Executive Allan Kilavuka revealed that the airline is taking measures to mitigate the losses, including a pause on route expansion.
"We will not be opening new routes, at least for the next two years, because we are not in a financial state to invest in a new route," Mr. Kilavuka said.
Despite the challenges, the airline has shown a positive performance in the past, with a 12.4% increase in revenue from Sh114 billion in 2018 to Sh128 billion in 2019, its best performance yet.
Passenger numbers also grew to a record 5.1 million, attributed to network expansion gains.
However, with shrunken incomes, Kenya Airways has seen the grounding of most of its planes, and does not plan to expand the fleet until 2023.
Kenya Airways is seeking support from the government amid the risk of total decimation, with Board Chairman Michael Joseph stating that the airline has asked for support, like every other airline in the world.
