Kenya Airways Passengers Lost KSh 4.6 Billion on Expired Tickets, Annual Report Indicates
- Kenya Airways (KQ) said in its latest annual report that the value of expired tickets reached KSh 4.6 billion in 2024
- The money, which now goes back to the airline as earnings, was realised after passengers booked the tickets but did not travel
- Customers are required by KQ under its policy to travel with tickets they have booked within 13 months after receiving travel documents
Bonface Kanyamwaya, a journalist at TUKO.co.ke, possesses over 10 years of expertise in financial, economic, business, market, and aviation fields, offering insights into Kenya and global trends.
The value of expired tickets at Kenya Airways (KQ) rose to KSh 4.6 billion in 2024, disclosures by the airline show.
Source: Twitter
The airline’s latest annual report said that the value of expired tickets increased by 9.4% from KSh 4.26 billion in the previous year, after customers booked the tickets but did not show up to travel.
The airline allows customers a 13-month window to use the tickets, after which, if the tickets are not utilised, the airline takes them back.
"It’s the customers' responsibility to utilise their tickets within the valid period. The information regarding ticket validity is given at the time of purchase, and the same, especially in cases of unrestricted tickets, is contained in the Conditions of Carriage, published on Kenya Airways’ website," KQ's head of pricing and revenue management Jackson Kamande told Business Daily on Tuesday, May 27.
"The airline incurs costs when tickets are not utilised and cannot therefore relax the rules. Such tickets attract costs from the distribution system along with missed opportunities on reserved space that was never used," he said.
Tickets are considered current liabilities and only become revenue sources after customers fly or the tickets expire.
KQ sells tickets in advance and books the amount as current liabilities.
The tickets are normally converted into revenue upon travel or when travellers fail to use the tickets after 13 months.
Strict KQ ticket refund policy
A customer may fail to use the ticket if they fall ill for a long period or lose their life after booking.
The airline allows its passengers facing problems to either seek refunds or rebook flights, with these requests processed within a minimum of 30–40 working days.
However, customers must know that the refund policy at KQ is tied to strict rules.
The airline, under its policy, offers a full refund to deceased passengers, but there is no refund for family members who were going to accompany the deceased before the travel or were with the passenger when they died.
Source: Twitter
Michael Joseph leaves the Kenya Airways board
Meanwhile, Kenya Airways Chairman Michael Joseph is set to exit the airline’s board next month after completing his tenure.
Joseph, an astute business leader in Kenya who has also served on several other corporate boards, is scheduled to cease being the chairman of KQ’s board on Friday, June 13.
He will step down from his role after attaining the minimum retirement age as per the board charter, which bars him from seeking re-election.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
