Kenya Airways (KQ) has lost a whopping Sh800 Million shillings after stopping flights to and from China over the deadly Coronavirus.
At the beginning of February, KQ yielded to pressure from Kenyans who called on the government to suspend flights to China as a measure to stop the spread of Coronavirus that is still ravaging China.
The airline suspended flights between Nairobi and Guangzhou, an important source of passengers and cargo for the airline. And in just one month, the airline reports it has lost about Ksh800 million shillings.
“We are looking at a lost revenue of about 8 million dollars, both passenger and cargo. However, various initiatives are in place to increase passenger and cargo revenue on other routes to minimize this impact,” said Mr. Allan Kilavuka, the acting CEO at Kenya Airways.
Kenya Airways has been going through financial tribulations for over five years ever since it ran into a loss of more than 26 billion shillings. The airline had been trying to reduce the losses but the hope of shareholders getting a feel of dividends seems too far from being realized.
The suspension of flights to China has dealt a huge blow on the airline as many destinations continue to confirm the presence of the virus. It is not clear whether KQ will be compelled to suspend flights to all the affected countries.
The coronavirus has so far infected more than 75,000 people globally and killed over 2,200.
“I am optimistic that the situation in China will be under control soon and we will resume our service that continues to create convenience and a good flying experience for all our guests,” he added.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]