This archive report was first published on 2 July 2021.
Published on July 2, 2021, Kenya Airways has reduced its flight frequency to Entebbe by 25% in response to the rising Covid-19 cases in Uganda and strict government containment measures.
The airline has cut the number of flights from 12 a week to nine, citing low passenger demand on the route.
Uganda is a key route for Kenya Airways, with the airline operating the most frequencies within the region. However, the low demand is expected to impact the carrier's earnings.
"There is a third wave in Uganda and we have had to restrict our flights by cutting on frequencies," said Allan Kilavuka, chief executive of Kenya Airways.
Mr. Kilavuka noted that the emerging waves of the virus have severely impacted the carrier, as each time they start picking up, countries announce new outbreaks.
Uganda is currently battling its third wave, which has led to a total lockdown in the landlocked nation, with restrictions on movement from one district to another.
The airline has also been affected by the restriction on the UK route, one of the lucrative destinations in Europe.
Kenya Airways resumed the UK route last Saturday with one flight a day, but Kenyans are still restricted from traveling there due to Nairobi being placed under the red list.
To mitigate the impact of low demand, the carrier has negotiated a productivity-based method of payment with its lessors, avoiding fixed costs and reducing high expenses involved in fleet management.
As a result, the airline will save $45 million this year after changing its terms with the lessors to only pay for the hours the aircraft are operational.
