FEATURED ARTICLE

Kenya Airways to Lose Sh50bn by End of 2020

Share
KQ Michael Joseph
Kenya Airways Chairman Michael Joseph. The airline has projected that it will have lost Ksh50 billion by the end of 2020.
Share

The Kenya Airways board of directors estimates that the airline could lose as much as Ksh50 billion by the end of the year due to movement restriction measures put in place by the government in March to stop imported COVID-19 cases into the country.

KQ is gearing for the resumption of flights as the government is planning to lift the grounding of domestic flights imminently and laying out plans to gradually ease the resumption of international flights.

Speaking during an inspection tour of the Jomo Kenyatta International Airport (JKIA) on Tuesday Board Chairperson Michael Joseph said the airline is raring to go after a virus-induced hiatus.

“There are several protocols, your temperature will be checked, luggage to be sanitized, all hand luggage should be put in the luggage before you go for the check-in,” said Mr. Joseph.

On the other hand, Transport Cabinet Secretary James Macharia said one of the biggest reasons guiding the calculated return of flights is Nairobi’s status as a regional hub.

“You cannot talk about opening the airspace without discussing Nairobi as a hub and our objective is to come and see objectivity, people flying in at night and the morning,” said CS Macharia.

“We’ve put in place protocols are in line with international civil aviation and many other associations like IATA to make sure that we comply with international standards and add value to ensuring the safety of our passengers,” added the Cabinet Secretary.

According to Kenya Airports Authority (KAA) Acting Managing Director Alex Gitari, resumption of flights will be guided by strict adherence to the Ministry of Health guidelines which include installation of 300 sanitization stations across Kenyan airports and enforced wearing of masks by airport staff and passengers.

‘We have made a lot of changes at the airport across all our airports, there are physical distancing markers and all over, we have installed more than 300 sanitization stations and we continue to add more,” said Gitari.

The resumption of flights will be welcome news for Kenya Airways which is hanging in by thread after having to contend with cargo business as its only revenue stream during the hiatus.

KQ has also enforced a series of pay cuts to keep the company afloat ranging from top management down to junior staff.

In May, the airline reported a Ksh12.9 billion loss for the full year ended December 2019.

KQ’s loss for FY 2019 was a 71.8% increase from the Ksh7.5 billion loss it posted at a comparable period the previous year.

Michael Joseph attributed the huge loss to an increase in operating costs with a 15% increase in capacity deployed to offer increased connectivity between cities and investment in new routes and the adoption of IFRS 16.

See Also>>> Safaricom Appoints Interim CFO

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
The Central Bank of Kenya (CBK) headquarters in Nairobi.
BUSINESS

CBK Raises KSh 63.3 Billion for Budgetary Support at July Treasury Bonds Auction

CBK (Central Bank of Kenya) accepted bids worth KSh 63.3 billion at...

AXYS Investment Bank
STOCKS

AXYS Investment Bank Partners with UK Firm to Offer Offshore Products

AXYS Investment bank has partnered with UK-based Janus Henderson Group, which has...

Jubilee Health Insurance CEO Njeri Jomo(seated left) and Bolttech Africa General Manager Bente Krogmann during the partnership signing deal as other officials look on.
BUSINESS

Jubilee Health Partners with Bolttech to Expand Access to Health Insurance Cover

Jubilee Health Insurance has partnered with global insurtech firm Bolttech to roll...

BUSINESSNEWS

SBM Bank Kenya Half-Year Net Profit Ups 88.2% to KSh 380.2Million

SBM Bank Kenya, a fast growing tier 2 lender with its Headquarters...