Kenya Airways on the Brink of Collapse as it Records its Worst-ever Loss

Tougher times ahead as Kenya Airways (KQ) records the worst-ever loss. The company announced its financial results that reported a comprehensive loss of Kshs.46 billion for 2020. The state-owned firm saw its revenue decrease by 58.8 percent.

Kenya Airways recorded the enormous loss due to Covid-19 pandemic, which led to the disruption of international travels, as different countries imposed state-sanctioned restrictions to curb the spread of the virus.

According to the Business Daily, the loss for the preceding financial year was 2.8 times in excess as compared to the Kshs. 12.98 billion that was posted a year before. KQ chairman Michael Joseph revealed that outlook still looked bleak for the national air carrier.

“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 or three years,” Mr Joseph stated.

He further revealed that about 70 percent of the total KQ passengers that travelled via air in 2020 “were flown during the first three months of the year,” while attributing the drop in the subsequent months to “the global crisis that deepened that year.”

Statistics indicate that KQ has recorded continuous loss running for eight years in a row without making any gains. The cumulative loss for the last 8 years is Kshs.128.76 billion.