Kenya Airways Lost 800 Million Shillings In One Month

Kenya Airways has lost a whopping 800 Million shillings after stopping flights to and from China over the deadly Coronavirus.

Kenya Airways yielded to pressure from Kenyans who called on the government to suspend flights to China as a measure to stop Coronavirus from landing into Kenya.

The airline suspended flights between Nairobi and Guangzhou, an important source of passengers and cargo for the airline. And in just one month, the airline had lost about 800 million shillings.

“We are looking at a lost revenue of about 8 million dollars, both passenger and cargo. However, various initiatives are in place to increase passenger and cargo revenue on other routes to minimize this impact,” said Mr. Allan Kilavuka, the acting CEO at Kenya Airways. He was speaking to The East African paper.

Kenya Airways has been going through financial tribulations for over five years ever since it ran into a loss of more than 26 billion shillings. The airline had been trying to reduce the losses but the hope of shareholders getting a feel of dividends seems too far from being realized.

The suspension of flights to China has dealt a huge blow on the airline as many destinations continue to confirm the presence of the virus. It is not clear whether KQ will be compelled to suspend flights to all the affected countries.

The Deadly Coronavirus

The deadly Coronavirus is sweeping across China and has already killed more than 2,600 people and infected more than 75,000. The virus has already been confirmed in 30 countries.

On Monday, South Korea announced the closure of all schools after new infections in the country hit 161. At the same time, more than 2000 soldiers were quarantined over suspected cases of Coronavirus.

The virus has always found its way into the African continent after it was confirmed in Cairo, Egypt. There have been no further updates since the first case was reported.

READ: KQ Suspends Flights To China As Coronavirus Fears Mount