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Kenya Airways Suffers Record Loss owing to the Corornavirus Pandemic

NAIROBI, Kenya, Mar 23-National carrier Kenya Airways has announced that its losses nearly tripled in 2020 to stand at Sh36 billion compared to Sh13 billion in 2019.

The announcement was made by KQ’s Chief Financial Officer Hellen Mathuka who pegged the losses on reduced demand for air travel owing to the outbreak of the coronavirus disease.

“And the income, which is the main driver for performance this year, was down resulting in a loss which we are reporting this year of Sh36 billion,” said Mathuka.

At the same time, passenger numbers were down during the year, to stand at 1.8 million compared to 5.2 million in 2019.

The airline’s revenue was also down by 60 percent to stand at Sh52 billion, in the period under review.

The airline’s operating expenses were also down by 38.5 percent to stand at Sh79.93 billion from Sh130 billion in 2019.

The airline’s operating expenses were also down by 38.5 percent to stand at Sh79.93 billion from Sh130 billion in 2019.

KQ’s Chief Executive Officer Allan Kilavuka has however pegged recovery of the sector to other factors such as the uptake of cargo services and the rollout of the vaccines.

“ There is a range of uncertainty based on very many factors including the confidence that people will have to fly as well as how the vaccine will impact this confidence as well as the change in behavior of passengers on the overall performance of the industry,” said Kilavuka.

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The airline’s chairman Michael Joseph has added a predicted recovery of the airline to 2019 levels in the next two years.

“Unfortunately, we do not see a growth coming in this year or probably next year, probably it will take us to at least 2024/2025 before we the passenger levels going back to 2019 levels,” said Michael Joseph.

 

 

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