KQ suffers KSh 800M loss in 1 month after suspending China flights amid coronavirus crisis

– Kenya Airways (KQ), once the pride of Africa, operated the Nairobi- Guangzhou route three times a week before Coronavirus outbreak

– KQ’s chief executive Allan Kilavuka said the suspension of flights to and from China has affected the airline’s revenues

– KQ’s stock on the Nairobi Securities Exchange (NSE) has fallen by 1.29% over the past month to trade as low as KSh 2.29 per share as of Thursday, February 20

Kenya Airways (KQ) woes have deepened after the airline suffered a KSh 800 million loss in one month after suspending flights to China as a precaution against the deadly coronavirus (COVID-19).

The troubled national carrier which was once the pride of Africa, operated the Nairobi- Guangzhou route three times a week before the pandemic spread.

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KQ’s chief executive Allan Kilavuka said the suspension of flights to the Asian nation has affected the airline’s revenues. “We are looking at lost revenue of about $8 million (approximately KSh 800 million) both passenger and cargo. However, various initiatives are in place to increase passenger and cargo revenues on other routes to minimise this impact,” Kilavuka said in an interview with The East African. KQ widened its losses for the year 2018 to KSh 7.5 billion from KSh 6.4 billion in 2017. Photo: Kenya Airways.
Source: Facebook

KQ’s stock on the Nairobi Securities Exchange (NSE) has fallen by 1.29% over the past month to trade as low as KSh 2.29 per share as of Thursday, February 20.

Kilavuka however, expressed optimism things will return to normalcy as China tries to take control of the virus that has killed over 2,200 people and infected over 75,000 others. “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 said. KQ was forced to suspend its flights to China on Friday, January 31, after a scare involving a passenger who exhibited coronavirus symptoms boarded the plane.
The passenger, a Kenyan student, was isolated at the Kenyatta National Hospital but tests later confirmed he had not contacted the deadly virus. Do you have a groundbreaking story you would like us to […]

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