Kenya Airways expects to see a drop in revenues of between 60 billion Kenyan shillings ($555.30 million) and 70 billion shillings in 2020, the airline announced on Friday. “The reduction is due to the cessation of scheduled operations from the second quarter of 2020,” the airline said, adding that during the period, it operated a few charter flights and continued with cargo operations. The loss comes at a time the airline is experiencing loss-making stress after it reported a Sh14.3 billion loss for the six months to June 30, 2020. This compares to the Sh8.5 billion loss it made in a similar period last year. Besides, its revenues shrunk by nearly half from Sh58.5 billion to Sh30.2 billion in the six months period. The good deal was on cost-cutting, which helped it cut its total operating costs from Sh61.4 billion last year to Sh38.6 billion. However, given that its costs were far much ahead of its income, it ended up with an operating loss of Sh8.4 billion. Adding other costs of Sh5.9 billion to this, the losses swelled to Sh14.3 billion. The airlines current liabilities stand at Sh59 billion, keeping its liquidity ratios in the red.
