Kenya Airways (KQ) has resumed daily direct flights to New York in an effort to capitalize on the anticipated increase in demand for air travel over the summer.
Since January, the national carrier has been running five flights each day on the US route.
According to KQ, the decision to increase the frequencies was motivated by the high level of forward booking from travelers looking for summer tickets.
“We have increased our frequencies to daily on the New York route because of high demand from passengers as we approach the summer season,” said the carrier.
Starting TODAY, fly daily to New York from Nairobi and experience this amazing city. Dive into the city's rich history and culture by visiting the Metropolitan Museum, or indulge in world-class dining, shopping, and entertainment. Book now https://t.co/mO0bRlsyVU pic.twitter.com/jGJdh53HXE
— Kenya Airways (@KenyaAirways) June 19, 2023
A Parliamentary Budget Office Report showed that the government would incur an expenditure of Sh17.19 billion to pay for airline’s guaranteed debt.
“As of June 2022, the total outstanding guaranteed debt was Sh136.6 billion consisting of Sh68.1 billion and Sh67.3 billion commercial and bilateral loans respectively showing an elevated exposure to contingent liabilities,” the report stated.
According to the report, repayment of the KQ loan will cost the government an estimated Sh22.16 billion in the 2024–2025 fiscal year.
In the fiscal year that concluded in December 2022, Kenya Airways’ net loss more than doubled to a record Sh38.26 billion due to an increase in financing costs as a result of the government taking over the service of one of the dollar-denominated loans.
The national carrier’s cumulative deficit now stands at Sh172.68 billion as the net loss increased 1.4 times from Sh15.87 billion reported in 2021.
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