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KQ woes: From passenger stranded at JFK airport in New York to profit loss

clarence by clarence
December 18, 2019
in Business
Reading Time: 2 mins read
0

Kenya Airways (KQ) is making headlines again following
reports that the carrier left over 50 passengers stranded at the John F. Kennedy
International Airport, New York on Tuesday.

The airline also stunned Kenyans on Wednesday that its profit
by the end of 2019 financial period is expected to drop at 25 percent compared
to 2018.

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Majority of these passengers, who were expected to have
arrived in Nairobi today, have complained of negligence by KQ officials which
forced them to stay the airport for six hours.

This is after the
flight they were supposed to board was reported to have a problem with the passenger
door, which could not close properly.

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 “We were at JFK in
New York and the flight was supposed to leave at 1pm. We sat in the flight for
about one-and-a-half hours when we were told that 58 people were required to
leave, at about 3pm, the last person left,” recounted a passenger.

KQ promised an extra Sh50,000 with food to compensate the
passengers as they awaited for the next flight.

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 “We were told we
would be given food but we went without any offer of food or water from 11am
till 9pm, which is around the time we left,” said Grace Wacuka, a passenger.

The report comes at a time the airline report expected loss
amounting to financial challenges it is going through.

Despite several cost cutting measures by the carrier, Kenya
Airways Board Chair Michael Joseph blame the poor performance facing the
airline on stiff competition.

“Although Kenya Airways realised improved revenue growth in
the year, profitability was constrained by the increased competition in the
airline’s area of operations which, in turn, has increased pressure on pricing
in order to remain competitive,” he said.

“In addition, the adoption of new International Financial
Reporting Standards (IFRS) 16 rules in 2019 has required significant adjustments
to both the profit and loss statements and balance sheets for the current
financial year,” he added.

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