MIAMI – Kenya Airways (KQ) has been performing poorly since 2014 and in 2019, lost upwards of US$122m. Today’s statement gives little hope for a recovery in the short-term.
With African carriers losing a predicted US$6bn as a result of the pandemic, it is safe to say Covid-19 has taken its toll on the continent.
At KQ’s recent ‘Annual General Meeting’ Chief Executive Officer Allan Kilavuka stated that, “We don’t have the full picture of how much we have lost, but our estimates are since January to date we have probably lost in terms of revenue in excess of $100 million.”
Giving Government Full Control
He later added, “When we estimate to the end of the year, we will lose between $400 million and $500 million.”
While a short term recovery is extremely unlikely, Kenya Airways does have hope. Their main shareholder is the Kenyan government at just under 50%. Ambitious plans to give the government full control of the airline could be completed as early as October.
With a nationalization plan in the works, and a return to the skies in July, Kenya Airways may be able to emerge from the pandemic as a new and re-imagined airline.