Kenya Airways (KQ) has posted a net loss of Sh14.3 billion for the six months ended June, 2020. This represents a 67 percent growth in losses compared to Sh8.6 billion recorded during the same period last year.
The airline attributed the colossal loss to the Covid-19 pandemic which led to the grounding of its operations for months.
“The network activity from April to June was minimal due to travel restrictions and lockdowns effectively reducing operations to almost nil in connecting our home market to key cities. Measures were put in place to preserve cash including cost savings measures and reduced activity for employees,” the airline’s Chairman Michael Joseph said in a statement.
The number of passengers decreased to 1.1 million in the period under review, translating to a 55.5 percent drop from 2.4 million passengers in the same period last year.
The airline’s cumulative revenue declined to Sh30.2 billion in the first six months of 2020 down from Sh58.5 billion in the same period in 2019.
On the other hand, KQ’s half-year operating costs fell from 61.4 billion last year to Sh38.6 billion this year, resulting in a loss of Sh8.4 billion.
In addition, KQ incurred other costs amounting to Sh5.9 billion during the period while its liabilities stood at Sh59 billion.
“The 2020 results will be significantly negatively impacted because of the projected suppressed air travel demand. We project the demand to remain at less than 50 percent of 2019 for the rest of the year,” added Joseph.