This archive report was first published on 6 May 2020.
The Covid-19 pandemic has exposed the vulnerabilities of global airlines, with Kenya Airways being one of the hardest hit. As of 2020, the airline's revenue was heavily reliant on passenger services, with 90% of its revenue coming from this source.
However, with the pandemic causing a significant decline in passenger numbers, Kenya Airways has been forced to rethink its business strategy. The airline's CEO, Allan Kilavuka, has stated that the carrier has been heavily reliant on passengers but now needs to diversify its business.
One of the key areas of focus for Kenya Airways is its cargo business. The airline has converted some of its passenger aircraft into freighters, but this has proven to be a costly and inefficient solution. Kilavuka has stated that the cost of using a passenger aircraft is higher than a freighter due to wasted space.
Despite these challenges, Kenya Airways is optimistic about the potential of its cargo business. The airline is planning to invest in long-haul cargo planes and is banking on the cargo business to generate revenue and pay salaries and utilities.
However, the airline is not alone in its struggles. Other major airlines have also been forced to deploy their passenger aircraft for cargo transport, leading to a shortage of capacity and increased charges for freighters.
The Kenya Flower Council has expressed concern over the high charges being levied by freighters, with the cost having doubled due to high demand and low capacity. Exporters are finding it difficult to meet these exorbitant charges, which is affecting the horticulture sector.
