This archive report was first published on 15 May 2020.
As the coronavirus pandemic continues to ravage the world, Kenya's national carrier, Kenya Airways, is facing a significant decline in its passenger market. According to a statement made during a Ministry of Tourism webinar on Thursday, the airline may lose up to 76% of its passenger market by December 2020.
Kenya Airways' CEO, Allan Kilavuka, attributed the decline to the pandemic and subsequent travel restrictions, which have led to a decrease in leisure travel. He noted that business travelers are more likely to use the airline, resulting in a decline in revenues.
The airline has also been affected by the need to create a safe distance between passengers, which has resulted in fewer seats and higher ticket prices. This has discouraged travel and led to a decline in passenger flights.
However, the airline has found some success in its cargo business, generating KSh214 million in revenue in April. Kenya Airways has requested emergency funding from the National Treasury to maintain its grounded aircraft, pay staff salaries, and settle utility bills.
Elsewhere, Africa's largest airline, Ethiopian Airlines, has revealed that it has lost nearly $550 million since 2020 began due to the pandemic. The airline is running cargo flights and charter flights, which account for only 15% of its revenue.
Globally, airlines are facing significant losses due to the pandemic. The International Civil Aviation Organization estimates that airlines worldwide could face losses amounting to $253 billion by September this year.
