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Kenya Airways Faces Sh50 Billion Loss Amid COVID-19 Pandemic

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 1 July 2020.

As the COVID-19 pandemic continues to affect the aviation industry, Kenya Airways is facing a significant financial loss. According to the airline's board of directors, the company could lose up to Ksh50 billion by the end of 2020 due to movement restriction measures put in place by the government in March.

Published on July 1, 2020, the airline is gearing up for the resumption of flights as the government plans to lift the grounding of domestic flights and gradually ease the resumption of international flights.

Speaking during an inspection tour of the Jomo Kenyatta International Airport (JKIA), Board Chairperson Michael Joseph emphasized the importance of adhering to safety protocols. 'There are several protocols, your temperature will be checked, luggage to be sanitized, all hand luggage should be put in the luggage before you go for the check-in,' he said.

Transport Cabinet Secretary James Macharia highlighted Nairobi's status as a regional hub as a key factor in the government's decision to reopen the airspace. 'You cannot talk about opening the airspace without discussing Nairobi as a hub and our objective is to come and see objectivity, people flying in at night and the morning,' he said.

The resumption of flights will be guided by strict adherence to the Ministry of Health guidelines, including the installation of 300 sanitization stations across Kenyan airports and enforced wearing of masks by airport staff and passengers.

Kenya Airways has enforced a series of pay cuts to keep the company afloat, ranging from top management down to junior staff. The airline reported a Ksh12.9 billion loss for the full year ended December 2019, a 71.8% increase from the Ksh7.5 billion loss it posted at a comparable period the previous year.

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