This archive report was first published on 29 June 2020.
Kenya Airways is facing a tough decision over whether to resume flights in the face of strict social distancing rules imposed to curb the spread of coronavirus.
According to the airline's CEO, Allan Kilavuka, the rules, which demand that airlines limit passenger numbers to nearly half of their licensed capacity, would make it impossible for the carrier to operate profitably.
Mr. Kilavuka stated that the airline would need to nearly double ticket prices for flights to remain sustainable and profitable, which would be a significant increase of 60 to 100 percent.
The Ministry of Trade rules, which were published to guide businesses during the easing of Covid-19 restrictions, have sparked concerns among airlines, with Kenya Airways being one of the most affected.
Kenya Airways had hoped to resume commercial domestic flights in the next couple of days as the State prepares to ease the lockdown on travel between counties, especially Nairobi and Mombasa.
However, with the new rules in place, the airline is now considering delaying the resumption of flights.
Kenya Airways has lost $100 million (Sh106 billion) so far and could lose another $400 million (Sh42.5 billion) and $500 million (Sh53.2 billion) by the end of the year.
The national carrier was struggling long before the outbreak, posting 2019 losses of nearly Sh13 billion compared to Sh7.56 billion the previous year.
The coronavirus crisis has hit the global aviation industry hard, with African carriers alone expected to lose $6 billion (Sh636 billion) this year in revenue.
