Kenya Airways Makes Ksh 11.5 Billion Losses In 6 Months

Kenya Airways is still flying into losses. The once Pride of Africa has once again made huge losses for the first six months of 2021. The airline, blaming it on Covid-19 has made 11.5 billion shillings in losses, that is almost 2 billion shillings loss every month.

The total revenue during the period was reduced by 9 percent to 27,354 million shillings on account the cessation of domestic scheduled operations in the month of April 2021.

The airline also blamed the travel restrictions, and lockdowns due to a surge in virus cases in key domestic and international markets including UK, India, China, UAE, and the US.

A total of 0.8 million passengers were uplifted during the first half of 2021, a 20 percent decline in comparison to a similar period in the previous year.

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Though passenger revenue declined by 17 percent to Sh20,230 million, cargo revenues went up by 60 percent due to a strong focus on freighter operations.

“During the period, the company’s main focus was and still is cash conservation. The company has exploited opportunities of raising much-needed revenue through passenger charters and ramped up cargo operations. Other initiatives undertaken by management include partnerships with other airlines, lease rentals re-negotiations, payment plans with suppliers, and partial deferment of staff salaries,” said Kenya Airways Board Chairman Michael Joseph.

There are desperate efforts by the government of Kenya to “nationalize” the loss-making national airline, meaning buying all the shares and transitioning the losses to the taxpayer. Those in charge of the airline are skeptical of it ever making profits again.

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With the Covid-19 continuing, and with few Africans getting vaccinated, few will be allowed to fly meaning the future is full of darkness for Kenya Power. Only a miracle can save them from the fall.