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Kenya Airways

Kenya Airways to lay off a significant number of employees

The airline is struggling to survive amid the coronavirus pandemic

State-owned Kenya Airways is planning to let go of a significant number of its employees as it struggles to stay afloat amid the coronavirus pandemic, the media reported.

The airline said it is unable to fulfil its obligations and maintain operations in the current environment.

“A decision has been reached to carry out an organisation-wide rightsizing exercise which will result in a reduction of our network, our assets and our staff. Effectively, we have commenced a phased staff rationalisation process, which we expect to conclude by September 30 2020,” said KQ chief executive Allan Kilavuka in a memo to staff.

He added that with the suppressed demand for air transport occasioned by the pandemic, a large part of the airline’s fleet will remain grounded even after it resumes gradual flights intended to commence in August.

“We will also operate a reduced network when we resume our services as we anticipate that it will take some time before the industry starts to rebound,” added Mr Kilavuka.

 Kenya Airways has recorded a 12 percent increase in revenue for the year 2019, from  Sh114.185 million in 2018 to Sh128.317 million, the media reported.

The jump in revenue for Kenya Airways is heavily attributed to the expansion of the network, improved passenger, cargo, ancillaries, and other revenue streams.

Kenya Airways could suffer net losses of around Sh12.98 billion in 2020, compared to Sh7.558 billion loss it posted last year.

Kenya Airways attributes its poor performance to the adoption of IFRS 16 last year.

An increase in operating costs has also contributed heavily to the increase in net loss for the carrier.

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