Kenyans have been left in shock after the national carrier, Kenya Airways reported a loss of Sh 25.7 billion in the 2014/2015 financial year.
This is a 661% drop from last year’s loss of Sh 3.3 billion, the largest corporate loss ever recorded by a Kenyan company.
The airline has attributed the loss to the fall of the tourism industry in the country following terror attacks that have kept tourists away.
The issuance of travel advisories by most countries out of fear of insecurity was among the biggest blows to Kenya Airways.
The flag carrier said part of the loss was also as a result of stiff competition from Middle East carriers and high operating costs.
During an investor briefing in Nairobi today morning, KQ Managing Director Mbuve Ngunze said that while the situation looked dire, they had made significant investments during the year.
The airline has also reportedly obtained Sh20 billion loan to stay afloat.
Reactions from Kenyans on social media was that of shock and outrage at such huge losses.
Many expressed fears that the airline could sink into bankruptcy if nothing is done.
Through a hashtag #KQRebound, the airline explained the reasons behind the loss and future plans for the airline they claimed looked promising.
@Kijomba the pain has been deep but hoping for the best @KenyaAirways #KQRebound
— SokoAnalyst (@SokoAnalyst) July 30, 2015
What?! Seriously am in shock 20 something billion loss, are the flights free of charge nowadays? @KenyaAirways #KQrebound #KQ
— Eve Kaggai (@eve_kaggai) July 30, 2015
Until the entire management of @KenyaAirways is fired nothing will happen .Its time something is done.
— Cedrick Todwell (@ctodwell) July 30, 2015
Intense competition from Middle East carriers, fuel price volatility and travel advisories have been challenges #KQRebound - CEO Ngunze
— Kenya Airways (@KenyaAirways) July 30, 2015
Re-entry into West Africa, the revision of some travel advisories and the region attracting a lot of FDI are great opportunities. #KQRebound
— Kenya Airways (@KenyaAirways) July 30, 2015
Afrexim Bank will help refinance the business and raising long-term capital. #KQRebound
— Kenya Airways (@KenyaAirways) July 30, 2015
