Kenya Airways has lost an estimated $100 million in revenue as a result of the coronavirus pandemic and related lockdowns, CEO Allan Kilavuka told reporters on Friday.
“Our estimate is since January to date we have probably lost in terms of revenue about $100 million,” Kilavuka said, adding that figure was expected to grow to between $400 and $500 million by the end of the year.
Kenya Airways, in which Air France-KLM holds a small stake, was struggling long before the outbreak, posting 2019 losses of nearly 13 billion Kenyan shillings ($122 million) compared to 7.56 billion the previous year.
The government has been working on a plan to re nationalize the airline in an attempt to save the business after a 2017 debt restructuring did little to improve its outlook.
The airline is taking blows from shrunken revenues due to suspended international travel since the onset of the coronavirus in Kenya. Passenger services account for the bigger part of the airline’s revenues. KQ Board Chair Michael Joseph expressed worry that the mounting losses threaten the airline’s going concern. Joseph asked for the airline to be allowed to fly as soon as possible to mitigate the losses.
“The pandemic crisis has delayed that process by a few months but it is still ongoing,” chairman Michael Joseph said on Friday.
“Even at a reduced level, commercial flights would help us a lot. Our plea is to be allowed to open the skies as soon as possible so we can start earning revenue…” Joseph said.
Kenya closed its airspace in March after confirming its first case of COVID-19.
The airline hopes to resume commercial flights in July if the government lifts restrictions on air travel.
Joseph said the carrier plans to reduce the number of routes it serves and the frequency of flights, with passenger demand expected to remain depressed for at least eighteen months.
Kenya Airways currently operates 42 aircraft on routes to 56 destinations in Africa, the Middle East, Asia, Europe and North America.
“What we are trying to do is to emerge from this crisis…with a much more slimmed down, more efficient, more cost-efficient airline,” Joseph said.
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