Companies

Kenya Airways cuts fares by 30 percent in revenues race

kq-Dreamliner0504FA

A KQ Dreamliner aircraft. FILE PHOTO | NMG

bonface_img

Summary

  • The airline has reduced ticket prices in nearly all its destinations except flights operating on the Guangzhou, Dar es Salaam, Juba, Dubai and Freetown routes.
  • The airline’s domestic destinations of Kisumu and Mombasa are however included in the ongoing promotion fares that are available on both economy and business class tickets.

Kenya Airways #ticker:KQ has announced discounted air ticket prices of up to 30 percent as the carrier seeks to shore up revenues following increase in losses over Covid-19 related woes.

The airline has reduced ticket prices in nearly all its destinations except flights operating on the Guangzhou, Dar es Salaam, Juba, Dubai and Freetown routes from its hub in Nairobi as well as flights operating from Johannesburg to Dubai.

The airline’s domestic destinations of Kisumu and Mombasa are however included in the ongoing promotion fares that are available on both economy and business class tickets.

The offer is available for customers who pay before September 24, 2021 up to March 31, 2022. This means that a customer flying to Johannesburg in South Africa from its hub in Nairobi on September 28 to return on October 1 will pay Sh95,040 on economy class down from Sh135, 586.

“At Kenya Airways, we hold customer centricity at the heart of our sustainable business operations by providing our customers with exciting offers that meet their needs in real time,” the airline’s chief commercial and customer officer, Julius Thairu said in statement yesterday.

The offer comes at a time when the aviation industry is still on a slow path to recovery following the disruptions caused by the Covid-19 that saw airlines around the world grounded.

KQ resumed domestic flights last July while international travel started on August 1, 2020.

Although travel has since resumed on key international and regional routes, passenger numbers remain low due to public health safety restrictions—forcing KQ to keep part of their fleet grounded to limit costs.

The airline posted a Sh11.49 billion net loss in the six months ended June— a 19.8 percent cut from the Sh14.33 billion loss it incurred in the preceding similar period on account of Covid-19 disruption, taking its accumulated losses over the years to above Sh127 billion.

KQ served 0.8 million passengers in the review period, down 20 percent from the number served in six months of last year and 64 percent from half year of 2019.

Passenger revenue dropped by 17 percent to Sh20.23 billion while cargo revenue went up 60 percent due to increased focus on freight operations, especially Covid-19-related essentials like vaccines, hurting revenues.