On the day Kenya Airways announced it was to shed staff, the skies darkened further with the findings of a gloomy International Air Transport Association report on the on the state of aviation in Africa.



The report laid bare the business case for running an airline in Africa painting it as a loss maker as COVID-19 has closed borders and discouraged travellers. There are quarantine restrictions in 36 countries across Africa and the Middle East. The numbers are depressing. The IATA report says &nbsp;East Africa has lost 56% of its revenue and 53% of its passengers; West Africa 60% and 58%; North Africa 58% and 56% and Southern Africa 60% and 58%.



IATA says it is so bad that African airlines actually pay $42 to transport every passenger they carry in 2020. CNBC Africa asked the man behind the report how long can African airlines last in the face of these losses.



“Not long, not long. Our estimates have already shown that airlines have already burned through their cash reserves. We don’t expect any airlines in Africa to survive these kind of losses,” says&nbsp;&nbsp; Muhammed Albakri, the regional vice-president for Africa and the Middle East for IATA, told CNBC Africa.&nbsp;



“The impact of COVID-19 has been devastating all over the world but particularly for the African continent where the demand from passengers has fallen by 58% in 2020 compared to 2019. Airlines are supposed to post a loss of $2 billion that is because the decrease in the passenger numbers and $6 billion from passenger revenues that is something that has not been seen before.”



Albakri believes the only hope for survival for African airlines is for governments to give bail out packages and to open up borders to help kick start the travel industry.



Airlines should play a key role in the revival of African economies in the post-COVID-19 world by providing cheap and abundant air travel in aid of growth. Sadly, many of them are tottering amid falling revenue and grounded planes.



Kenya Airways is the next to take the pain. It has announced job losses will be made – even though the airline is not saying how many – will happened to keep the airline afloat. The airline has 4,000 workers and operates a fleet 36 planes flying to 54 global destinations.



Prior to the pandemic, the airline faced financial difficulties in its operations, owing to losses and debt.&nbsp; In December 2019, the airline issued a profit warning, signalling that its losses widened to $129.7 million from $75.8 million in 2018.

Rolling out, AMS.

Loss making in COVID-19 -Why it costs African airlines $42 every time you fly

NAIROBI (Reuters) &#8211; Kenya Airways plans to double its fleet over the next five years, its chairman said on Monday, as the loss-making carrier combats regional rivals like Ethiopian.



The Kenyan airline, which is 48.9% government-owned and 7.8% by Air France-KLM, restructured $2 billion of debt in 2017 and is opening new routes as it seeks to return to profit.



It had a fleet of 41 airplanes at the end of last year, comprising a mix of wide and narrow body Boeing planes, compared with Ethiopian which operates more than 100 planes.



Kenya Airways, which also operates Bombardier and Embraer planes on its short and medium haul flights, is restructuring its aircraft leasing agreements and its other debts to free up cash for investment in new planes, Chairman Michael Joseph told a shareholder meeting.



“We intend to double the size of the fleet over the next five years if we can find the right financial structure to do this,” Joseph said.



Efforts by the airline to boost its revenue by taking over the running of Nairobi’s Jomo Kenyatta International Airport were thwarted by a parliamentary committee last month.



The cabinet had backed a plan last year to hand over management of the profitable airport, the largest in the country, to Kenya Airways to revitalise its balance sheet and allow it to buy new planes and open new routes.



Kenya Airways wants to emulate rival carriers who operate airports, taking advantage of profitable services such as catering, fuel distribution, cargo and maintenance.



The parliament’s transport committee has instead proposed that the government considers other ways of helping the carrier, including exempting it from paying taxes.



Chief Executive Sebastian Mikosz, who was hired in 2017 to help turn around the airline, said last month he would resign at the end of this year for personal reasons, casting its recovery into doubt.



The chairman however said the airline’s management was intact despite Mikosz’s planned departure, adding he would leave behind a solid team but declining to say when a replacement for Mikosz will be chosen.



Editing by Duncan Miriri and Alexander Smith

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Loss making in COVID-19 -Why it costs African airlines $42 every time you fly

How Kenya Airways plans to double its fleet over the next 5 years

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kenya Airline

Loss making in COVID-19 -Why it costs African airlines $42 every time you fly

How Kenya Airways plans to double its fleet over the next 5 years

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