May 18, 2024

Money problems: Kenya Airways is fighting for every dollar

The East African airline is facing huge debts. Now Kenya Airways is fighting for every dollar.

It has been a long time since the company’s last profit. Kenya Airways was in the black for the last time in 2012. The ambitions of the airline in the East African country were high. In a ten-year plan, the airline wanted to operate around 100 aircraft by 2022, fly to every major city on the African continent and make its home base from the most important hub in Nyirbui, Africa.

Ten years later, apart from commitments, there isn’t much left. Instead of becoming the most important airline in Africa, Kenya Airways is facing a debt mountain of about $1.3 billion, reports say. Africa news. In 2022, the airline had a record loss of $290.62 million.

In talks with Boeing

Now the airline is fighting for money on many fronts. The administration is currently in talks with Boeing, for example, so that the $2.3 million deposit already paid does not expire, he writes. Business Daily Africa. Kenya Airways had ordered new aircraft but failed to pay for them in full within the stipulated time frame.

To save costs, the airline has also downsized its fleet. In addition, leases for three Boeing 777-300 aircraft have been terminated. Recently two widebody aircraft were sub-leased to Turkish Airlines. Through these measures, Kenya Airways wants to save about $30 million annually.

The company’s first profit next year

Instead of the target 100 aircraft, Kenya Airways now operates a fleet of 32, according to aviation data portal CH-Aviation. The 23 short and medium range aircraft are divided into 13 Embraer E190s, 8 Boeing 737-800s and 2 Boeing 737-300s. For long-haul routes, the airline relies on 9 Boeing 787-8 Dreamliners.

See also  Weather Watch - It will be windy on New Year's Week - Meteorologist

Management still sees the future positively and wants to start turning a profit again next year. This view is based on a 68 percent increase in the number of passengers, to 3.7 million. Freight business also increased by 3.5 percent.