Sunday, May 26, 2024

KQ customers lose Sh. 4.26 billion in ‘unused’ tickets within one year

Co-Op post

Kenya Airways customers lost Sh. 4.26 billion in tickets they bought but failed to use within the specified period in the financial year ended December 2023.

This was a 54.3 per cent increase from the Sh. 2.76 billion the airline received from unused and expired tickets the previous financial year.

According to a report that appeared in the Business Daily, Kenya Airways sells tickets in advance then books the value, net of discounts and taxes, as current liabilities in the ‘sales in advance of carriage’ account.

“This figure is reduced either when Kenya Airways or a partnering airline completes the transportation or when the passenger requests a refund,” the newspaper stated.

According to Kenya Airways, unutilized tickets are recognized as revenue on expiry following the lapse of the estimated period where the company believes there will be no material claim from passengers. The current estimated period is 13 months.

In its annual financial  report, KQ noted that it opened the year with Sh. 18.95 billion in prepaid tickets, against Sh. 10.89 billion in the previous year.

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During the year under review, ticket sales increased 65 per cent to Sh. 157.3 billion. KQ customers used Sh. 143.8 billion worth tickets. This left the airline with Sh. 28.2 billion as prepaid flight tickets.

A spot check on KQ’s refund policy shows that passengers may be eligible for refunds depending on the type of ticket they purchased.

“Kenya Airways will issue refunds for eligible tickets within 21-30 business days for credit/debit card purchases,” the airline states.

If a passenger has a non-refundable ticket, the airline says that they have one year from the ticket’s original issue date to reschedule their travel without losing the full value of the ticket, with deductions on any applicable change fees.

“In addition should the passenger not travel on a flight and they are holding a refundable or a non refundable ticket they are equally to benefit from a refund of said applicable taxes, charges and other fees,” the national carrier states.

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