Flying on thin ice! Kenya Airways acting CEO reveals 2 major challenges threatening recovery

Kenya Airways (KQ) faces significant hurdles in its quest for financial recovery, as soaring aviation fuel costs and a shortage of aircraft engines and spare parts emerge as two major challenges, according to Acting CEO Captain George Kamal. Speaking at a media briefing, Kamal highlighted how geopolitical conflicts, particularly the ongoing war in the Middle East, have driven fuel prices up by 72% in the current half year, making up between 50% and 55% of the airline's operating costs.

This sharp increase has put pressure on KQ's already thin profit margins, as net profit per passenger seat is only $1.50, forcing the airline to save every dollar it generates.

Another major challenge is a global shortage of aircraft engines and spare parts, which has extended maintenance timelines. Repairs that once took around 60 days now take 120 days or longer, leaving several KQ aircraft grounded for extended periods, including three Boeing 787 Dreamliners for much of the first half of the year. Kamal noted that the shortage has affected as many as nine aircraft from KQ's fleet of between 34 and 40 planes, reducing available seats and disrupting routes.

The airline is awaiting delivery of two Boeing 737 aircraft, while others were rejected after failing inspection tests, further straining its capacity. Despite strong demand on some international routes, high fuel costs and limited aircraft availability hinder KQ's ability to capitalize on the market. The carrier is exploring wet-leasing options and increasing its focus on cargo to boost capacity and meet demand.