Kenya Airways to receive a further USD 174 million government bailout
Since 2013, Kenya Airways (KQ) has been operating at a loss. In 2020, the coronavirus pandemic further depressed the Kenyan national airline. Since then, it has benefited from several financial aids from the State, allowing it to cover its expenses.
Kenya Airways will benefit from yet another financial aid from the Kenyan government. Parliament approved on 29 March 2022, the extension of the current year's budget, reports Business Daily.
This approval allows the Ministry of Finance to release the 20 billion Kenyan shillings (174 million USD) promised to the state-owned flagship. Until now, the National Treasury had feared a reprimand from MPs if it released the money without their prior approval.
However, this is the umpteenth bailout the government has given to Kenya Airways since international air travel was paralysed by the closure of almost all the world's countries' borders in March 2020 in a bid to curb the spread of Covid-19. Because of this pandemic, KQ ended the 2021 financial year in the red, posting its ninth year of losses. The last time the company made a profit was in 2012 (Sh1.66 billion).
Nevertheless, its financial situation is gradually improving. Indeed, Kenya Airways lost Sh6.8 billion in 2021, compared to Sh27.1 billion the previous year; a 75% improvement. The Kenyan flagship carried 2.2 million passengers last year. This is an increase of 25% compared to 2020, but a decrease of 57% compared to 2019. With 63,276 tonnes of cargo carried in 2021, its freight business recorded a 29% growth compared to 2020.
