Kenya Airways could lose up to $500 million in revenues by the end of this year, due to disruptions associated with the coronavirus, which has grounded the airline's passenger operations.
So far, the airline’s management says KQ has already lost an estimated $100 million due to the pandemic which forced the country to suspend international flights on March 25.
“When we estimate to the end of the year, we will lose between $400 million and $500 million”
The suspension of passenger flights in March badly exposed the airline, which sources a bulk of its revenue from passenger services forcing it rely on cargo services which accounts for a paltry 10 per cent of its revenues.
Earlier this month, the financially struggling carrier reported a $130 million full-year loss extending a string of back-to-back losses that have forced the government to consider re-nationalising the airline to save it from collapse.
Under the re-nationalisation plan, Kenya Airways, Kenya Airports Authority and the Kenyatta International Airport will be become subsidiaries in an Aviation Holding Company in a plan the government says will help the country’s aviation assets to complement each other.
