Kenya Airways makes $248 million in revenue for first half of 2021
Flag carrier of Kenya, Kenya Airways for the first half of 2021 made $248 million in revenue.
The revenue made for the period under review is however, some $22.3 million (9%) less the total revenue recorded for same period last year.
The reduction in revenue according to Kenya Airways Board Chairman Michael Joseph, is due to the cessation of domestic scheduled operations in the month of April 2021, as well as travel restrictions, and lockdowns due to a surge in virus cases in key domestic and international markets including UK, India, China, UAE, and the US.
Currently, the airline operates in 40 international destinations and two domestic routes with significantly reduced frequencies of approximately 65 percent as compared to 2019.
COVID-19 restrictions on travel by various states remain the airline’s biggest challenge and the key factor behind its depressed half-year results.
Speaking at a virtual investor briefing on Thursday, the Board Chairman noted the current upsurge coupled with the continent’s low vaccination rates have contributed to low passenger traffic from Africa to other markets like Europe who have issued or extend stringent travel restrictions on travellers from African countries in a measure to prevent the spread of the new COVID-19 variants.
As a result, a total of 0.8 million passengers were uplifted during the first half of 2021, a 20 percent decline in comparison to a similar period in the previous year.
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Though passenger revenue declined by 17 percent to $183.8 million, cargo revenues went up by 60 percent due to strong focus on freighter operations.
The airline has been able to uplift an increased 500 tonnes monthly, showing its cargo division’s outstanding agility in adapting its operations to provide air freight services in this new environment.
“During the period, the company’s main focus was and still is cash conservation. The company has exploited opportunities of raising much-needed revenue through passenger charters and ramped up cargo operations. Other initiatives undertaken by management include partnerships with other airlines, lease rentals re-negotiations, payment plans with suppliers and partial deferment of staff salaries,” said the Board Chairman.
“Notwithstanding the current global crisis brought about by COVID-19 pandemic, we will continue to adopt an agile approach in responding to the current dynamic marketplace. Our focus is on business recovery and to continue contributing to the rebuilding of economies and communities impacted by the pandemic. Restoring customer confidence for business and leisure travel will be key to growing demand, as well as creating agile and nimble business models that are sustainable and responsive to the customer’s needs,” added Kenya Airways Group Managing Director and CEO, Allan Kilavuka.
According to IATA, Q1 2021 results show that the start of the year was still very weak for the airline industry, as virus outbreaks paused air travel recovery in many important markets.
Faced with long recovery prospects, diminishing revenue occasioned by reduced demand in passenger business, and increased costs due to tighter health and safety measures, the survival and the rebound of the airline is the company’s business focus for the rest of the year.
