Kenya Airways sees travel recovering in a year as losses mount

Kenya Airways Plc said demand for air travel will take at least a year to recover from the coronavirus pandemic as the part-state owned carrier looks to regain the confidence of potential flyers.

The Nairobi-based company halted commercial passenger flights on March 25 to comply with a wave of travel bans and border closures designed to contain the outbreak. At the time, the airline asked for financial assistance from the government to see it through the next six months.

Airlines worldwide have been battered by the Covid-19 outbreak, with governments pledging about $123 billion in support. The International Air Transport Association warned Tuesday there would be a “number of failures” if there’s no immediate improvement in trading conditions as countries come out of lockdown measures.

Kenya Airways said it made a seventh consecutive annual loss in 2019. The airline fell almost 13 billion shillings ($121.2 million) into the red, compared with 7.6 billion shillings the previous year, according to a statement.

The airline’s woes come as Kenya works toward a full nationalization of the national carrier. Under the plan, the government, which owns a 48.9% stake, is expected to buy out remaining investors and form a holding company to run the group alongside Kenya Airports Authority, the Business Daily newspaper said Wednesday, citing committee Chairman David Pkosing.

Air France-KLM owns an almost 8% stake in Kenya Airways.

The coronavirus pandemic presents Kenya Airways with an opportunity to “recalibrate and reset our business in order to adopt measures that will future-proof our airline,” Chairman Michael Joseph said in the statement, without providing further detail.