Kenya Airways(KQ) expects its revenues to rise by 20% rise this year, its Chief Executive Officer Allan Kilavuka has disclosed.
This is as the national carrier battles to claw back what it has lost in passenger business as a result of the global pandemic.
Kenya Airways Projections
” The projection is conditional on there being no further disruptions and restrictions of travel because of omicron or a downward trend in visitor numbers in the August high season because of the upcoming Kenyan elections,” said Kilavuka.
Kenya Airways, in which the Kenya Government has a 48.9% stake, had its revenue cut into half at the height of the global health crisis two years ago.
While passenger revenue had grown 21% last year, which helped the airline’s loss narrow by a fifth during the first half of 2021, but it still lost KSh 11.5 Billion(US $101 million) during the six months.
Kenya Airways cut down its Net Losses to KSh 11.5 Billion in the first six months of 2021 compared to a Net Loss of KSh 14.3 Billion over the same period in 2020.
Kenya Airways also recorded a reduction in Total Income to KSh 27.4 Billion in H1, 2021 from KSh 30.2 Billion during six months of 2020.
The national carrier’s balance sheet size shrunk to KSh 153.3 Million in H1, 2021 from KSh 171.5 Million in H1, 2020. The Airline cut its operating losses from KSh 8.4 Billion at the end of H1, 2021, compared to KSh 8.4 Billion in H1, 2020.
Kenya Airways had moved into insolvency long before the onset of the COVID-19 pandemic. An aviation consultancy Seabury was hired last month to advice the airline on how to return back to profitability.
Although African Carriers are beginning to recover from effects of the global health crisis, Kilavuka says the pace is still lagging behind that of airlines in Europe, Asia and the United States of America.
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