This archive report was first published on 4 August 2020.
Published on August 4, 2020, the COVID-19 pandemic has had a devastating impact on the airline industry, with Kenya Airways being one of the worst affected.
The International Air Transport Association (IATA) forecasts that airlines could post a -20.1 per cent profit margin this year, losing Sh8.5 trillion ($84.3 billion). This is a significant decline from the previous year, and it's expected that the industry will not recover to 2019 levels until 2024.
Kenya Airways, in particular, has been struggling long before the COVID-19 outbreak. The airline posted losses of almost Sh13 billion in 2019 and has lost an estimated Sh10 billion during the pandemic. Chief Executive Allan Kilavuka has projected a cumulative loss of Sh40 billion this financial year.
As a result, the airline has had to lay off workers, reduce its network, and offload some assets. In July, KQ said it would lay off workers, reduce its network and offload some assets due to Covid. So far, the company has laid off around 650 people, mostly trainee pilots, trainee cabin crew, technician trainees, and newly hired staff on probation.
Other airlines, such as Qatar Airways, Emirates, Air France, KLM, and British Airways, have also resumed flights to and from Nairobi. However, the global airlines industry has been hit once more as governments move to stop another wave of the coronavirus.
