COVID-19: Report shows Kenya Airways could lose $500 million in 2020

COVID-19: Report shows Kenya Airways could lose $500 million in 2020

- 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 will adversely affect operations of the airline

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

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Information available to shows that Kenya Airways is likely to lose $500 million due to the effects of COVID-19.

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

This, he said, is due to the anticipated loss, which would affect the finances of the company.

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

Kilavuka added that Kenya Airways is in the process of securing over $70 million in an emergency bailout 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 planning a strategy to diversify its business from passengers to cargo.

Reports show Kenya Airways recorded a $122 million net loss as a result of increased operating costs.

In other news, the chief executive officer (CEO) of the McDan Group, Daniel McKorley, has opened up on losses incurred due to COVID-19.

According to him, the company has lost over $4 million every month since the pandemic broke out.

He added that his company has been one of the hardest hit in the country.

READ ALSO: Don't sell products and services in foreign currencies - BoG warns business owners

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Source: Yen

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