One of Africa’s biggest airlines, Kenya Airways narrows losses occasioned by the COVID-19 pandemic as the carrier expects a 20 percent in revenue in 2022, according to its CEO Allan Kilavuka.
The carrier in which the government has a 48.9 percent stake saw revenue go down by half at the height of the pandemic in 2020 as airlines around the globe were forced to ground their airplanes. Kilavuka said, “We have been through the worst patch,” adding that passenger revenue had grown 21 percent in 2021 as recovery started.
Narrowing losses
The improving situation helped the airline to narrow its loss by a fifth during the first half-year, but it still lost $101 million during the six months. The airline slipped into insolvency long before the pandemic, mainly due to an expansion drive that saddled it with hundreds of millions of dollars in debt to finance the purchase of new planes, followed by travel warnings in 2013 due to insecurity in the country. Aviation consultant Seabury was hired last month to advise on returning to profitability and its report is expected in the next three weeks, Kilavuka said. “We are looking for a more efficient airline. The network should not lose money.”
Uncertainty
Forward bookings for the peak summer travel season are promising, he said, adding the airline was hoping an election in Kenya scheduled for August 9 would not cause disruption. Two out of the last three elections in Kenya saw significant violence, hurting the travel industry and the wider economy. This year’s Kenya Airways growth forecast is dependent on no further travel disruption or restrictions caused by any new coronavirus variants, the CEO said.
African carriers hinge hope on cargo
Although African carriers are starting to see a recovery, the continent’s airline industry is lagging that of Europe, Asia, and the United States, Kilavuka said. Cargo, which accounts for some 10 percent of revenue at Kenya Airways, performed well during the pandemic, he…