KQ Suffers Losses. Attributes That to the Covid Pandemic.
National carrier Kenya Airways (KQ) has narrowed its net loss to Sh11.5 billion for the first half of 2021. The performance is a 19.5 percent improvement from an Sh14.3 billion loss recorded during a similar period in 2020.
According to their financial statements released to the public, through the Nation newspaper, the carrier’s earnings, however, continue to take a hit from the Covid-19 pandemic, resulting in an Sh3 billion reduction in revenues from the Sh30.2 billion turnover it reported in the first half of 2020.
The Carrier’s management blamed low passenger numbers, which dropped by 18 percent, for the reduced revenues. This has been adversely affected by the Covid 19 pandemic which has hit the transport industry.
“The financial situation at the airline is precarious. We are at a negative equity position, meaning that we are insolvent as an organization. The company is still in need of financial support,” said CEO Allan Kilavuka during a virtual investor briefing on August 26.
He said passenger numbers are too low to cover all its costs, observing that many of its markets are still reeling from Covid-19 containment measures that have reduced business. The company’s reliance on local operations is also low compared to other markets, with domestic travel contributing only 10 percent of its revenues.