On Saturday, 27th June, Kenya Airways confirmed that it had lost an excess of sh10 billion in revenue since January. As if this is not enough, they are anticipating for sh 50 billion loss by the end of the year in conjunction with the coronavirus pandemic.
Alan Kilavuka, the KQ CEO, told a group of journalists that the airline has expectations of resuming it functions in July for both the Domestic and International flights.
“Our estimate is that since January to date, we have probably lost around $100 million, when we estimate to the end of the year we will lose $400 to $500 million,” says Kilavuka.
This is not the first time Kenya Airways has so many losses. In 2019, it posted a rough estimate of about sh 12.98 billion, which was a significant loss compared to the previous year, which had sh 7.558 billion loss in that year. Their Chairman Michael Joseph reassured the government on their readiness to embarking back to flying in response to their losses. If we resume, it will boost the revenue generated as it would have paved the way for other businesses to be operational again. Mentioning on other companies, the tourism and hospitality industry would revive back its energy, as more tourists will now be able to come visiting Kenya.
“Our plea is that we can start flying as soon as possible, even if it is at a reduced level, any commercial flights will help us a lot, so we can start earning revenue, bringing tourists to Kenya, bring business meetings, hotels will open, create more job and get more people to work, ” he said
We all know that worst came to worst for most businesses when the government banned all flights in March except for cargo flights, which only allowed three persons to be operational. This situation, however, got worse by the time as the domestic flights were also banned. This occurred when the government banned the moving in and out of Nairobi Metropolitan. This meant that no planes flew to Kisumu, Eldoret, Mombasa, and Mandera if it was not cargo.
The KQ CEO gave an assurance that there will be no new routes to be launched by the airline. Therefore, people should be expecting another launch in at least two years to come and not earlier than this. This response to the significant losses it has made ever since 2019 and the worst, which is that of 2020.
So what will change? Kilavuka mentioned that every passenger would have a responsibility to put on his or her masks. However, what the airline will not do is the issue of maintaining social distancing by reducing the number of seats. Air tickets will be more expensive by 60 %, which would equate to an unrealistic figure, and not all consumers will be able to afford it.