Coronavirus reported to cost Kenya Airways a whopping $500 million

Coronavirus reported to cost Kenya Airways a whopping $500 million

- Kenya Airways has predicted a likely loss of $500 million in 2020 due to the effects of Covid-19.

- It is expected that the projected loss would adversely affect the operations of the airline

- Measures are however being implemented to ensure that Kenya Airways stays in business

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Kenya Airways is likely to lose $500 million in the 2019/20 financial year due to the effects of Covid-19 on the travel industry.

According to the airline’s Chief Executive Officer (CEO) Allan Kilavuka, the airline is therefore compelled to make hard decisions.

Briefly.co.za gathered that this, he said, is due to the anticipated loss which would affect the finances of the company.

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As per a Business Insider report, this would include laying off staff and sale of key assets of the company.

Kilavuka added that Kenya Airways is in the process of securing over $70 million in an emergency bailout in order to stay afloat.

He went on to say that the airline has developed a restructuring plan and is waiting for the green light from the board of directors.

The CEO also noted that the airline is also planning a strategy to diversify its business from passengers to cargo.

Reports show that in 2019, Kenya Airways recorded a $122 million nett loss as a result of increased operating costs.

Virtually all airlines around the world have taken serious financial strain because of the coronavirus epidemic and many are unlikely to emerge from the post-coronavirus world.

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Source: Briefly.co.za

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