KQ outlines fleet, cargo expansion plans in turnaround
Kamal said the immediate priority was to return aircraft to service and stabilise the airline before embarking on faster growth, with KQ targeting full fleet capacity by the end of 2026 and a stronger growth phase from 2027.
Kenya Airways (KQ) has unveiled plans to revitalize its operations and financial standing in the face of soaring fuel costs, aircraft shortages, and substantial debt. The airline aims to restore its grounded fleet, expand to over 60 planes, boost cargo operations, and elevate its maintenance business.
Acting Group Managing Director and CEO, Capt. George Kamal, emphasized that the airline is not focused on constructing additional MRO 2 hangars but rather on establishing an expansive MRO City, capable of creating more than 2,000 direct jobs. Initially, the primary focus is on returning aircraft to service and stabilizing the airline before pursuing accelerated growth. KQ aspires to attain full fleet capacity by the end of 2026 and accelerate growth from 2027.
The medium-term plan envisions a fleet expansion to approximately 60 aircraft or more within the next three years. Current capacity constraints stem primarily from global engine and spare part shortages, impacting maintenance and aircraft availability. For instance, three Boeing 787 Dreamliners were grounded for most of the first half of 2026. Higher fuel costs have further strained operations.
Kamal noted that the turnaround necessitates additional capital for aircraft procurement and operational expansion. He highlighted that transformation costs necessitate investments, and securing an investor is crucial for purchasing aircraft. The airline's presentation outlined three key execution areas: fleet restoration, cost discipline enforcement, and capital acquisition.
KQ has already made progress in restoring its fleet, shifting from operating with only 19 of its 32 aircraft in 2025 to between 25 and 26 aircraft currently. Some aircraft are undergoing scheduled maintenance due to spare part availability issues. The fleet strategy also influences domestic operations, allowing KQ to utilize smaller aircraft for certain routes, thereby reducing fuel and maintenance costs while offering competitive fares.
Regional routes show strong demand, with intra-African services experiencing a load factor of around 75%. Despite this, KQ faces significant aircraft availability challenges. Fuel prices have surged by 72% during the first half of 2026, limiting the ability to pass on full increases to passengers. KQ aims to enhance revenue streams beyond passenger travel, with cargo operations projected to contribute about 20% of revenue within two to three years.
The airline plans to increase its share of Kenya's export cargo market, targeting around 250 tons per day to achieve a significant turnaround. KQ is also considering acquiring or leasing dedicated cargo aircraft, such as Boeing 777 or 767 freighters, to bolster its cargo capacity.
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