This archive report was first published on 27 June 2020.
Published on June 27, 2020, Kenya Airways management has expressed concerns over the airline's financial situation, with estimates suggesting losses of up to KSh50 billion by the end of the year.
Speaking during the 44th Annual General Meeting, CEO Allan Kilavuka revealed that the airline has already lost over KSh10 billion since January. He further stated that the airline's revenue loss since January has exceeded $100 million, with projected losses of between $400 million and $500 million by the end of the year.
‘We don’t have the full picture of how much we have lost, but our estimates are since January to date we have probably lost in terms of revenue in excess of $100 million. When we estimate to the end of the year, we will lose between $400 million and $500 million. This is unprecedented but that is what we are projecting,’ Kilavuka said.
The airline's financial woes are largely attributed to the suspended international travel due to the COVID-19 pandemic. Passenger services account for the majority of the airline's revenues, and the mounting losses threaten the airline's going concern, according to KQ Board Chair Michael Joseph.
‘Even at a reduced level, commercial flights would help us a lot. Our plea is to be allowed to open the skies as soon as possible so we can start earning revenue…,’ Joseph said.
Kenya Airways is relying on the cargo business to fill in the gap in revenue. The airline has been ferrying cargo to China, London, Sharjah, and Amsterdam, with an average of 3,000 tonnes of cargo transported per week.
The airline has also halted plans to expand to new routes until at least 2023, given its financial situation.
