KQS World Record Loss
The national carrier Kenya Airways (KQ) net loss has nearly tripled to Sh36.2 billion, the worst ever in the history of the airline, on account of Covid-19 disruptions that led to a sharp decline in passenger numbers.
The loss, for the financial year ended December 2020, is 2.8 times more than the Sh12.98 billion net loss it had posted in the year 2019, and now deals a major blow to the recovery efforts of the national carrier.
The Kenya Airways chairman Michael Joseph says the outlook still looks bleak and the airline will be seeking a right-sized network to match the prevailing demand.
“The Covid-19 global outbreak in 2020 was beyond anyone’s prediction and its impact on the industry is expected to continue affecting air travel demand for the next two to three years,” said Mr Joseph.
KQ’s loss, also the worst ever results in corporate Kenya, came on the back of strict Covid-19 control measures across the globe that crushed demand for air travel.
The airline says that passenger revenue dropped by 67.5 per cent to Sh33.7 billion as passenger numbers reduced by 65.7 per cent to 1.8 million.