Kenya’s flagship career, Kenya Airways is far in the red and deeper in loss than when the coronavirus pandemic started.
For their 2020 full year revenue report, Kenya Airways projects a drop in earnings between 60 billion Kenya Shillings and 70 billion Shillings according to the airline’s chief executive, Allan Kilavuka.
In 2019, the airline lost 12 billion Shillings farther from the 7.56 billion Shillings lost in 2018, further proof that the airline is heading towards bankruptcy.
IATA predicted in April, that Africa’s aviation industry will lose $6 billion this year due to the COVID-19 guideline restrictions.
The carrier’s before taxation half-year loss topped 14 billion Shillings as the lockdown and social distancing rule kicked in and movement restrictions became part of the new normal of reduced social interactions. This negative earning almost doubled 2019 loss of 8.54 billion Shillings for the same period.
The number of passengers who boarded Kenya Airways dipped by 56% for that period and would remain in the red until 2024- according the airlines board chairman, Michael Joseph. The company has laid 650 staff off to ease the losses and reduce debt.
Moving with the times, it is trying to convert some planes to cargo carriers and stay in business as goods are still being moved despite passenger drought. Plans of more human flight have however not been entirely forgotten as planes are being serviced to ensure airworthiness.
Kenya Airways returned to the skies for domestic destinations in July and resumed international flights at the beginning of August.
The Nairobi Stock Exchange has suspended trading of Kenya Airways shares from July. The three month’s suspension paves the way for legislation to ease nationalisation of the airline. Board chairman, Michael Joseph expects the process to be complete early in 2021.