KQ chief executive George Kamal / HANDOUTKenya Airways is facing a frustrating paradox. Passengers are willing to fly; some of its long-haul routes are filling up beyond 90 per cent, and revenue is rising.
Yet the national carrier is unable to fully cash in because it does not have enough aircraft in the air.
The airline’s half-year results for the period ended June 30, 2026, show how fleet shortages and supply chain disruptions have become a major constraint on Kenya Airways’ recovery, limiting the number of seats it can sell even as demand remains strong.
Kenya Airways reported that passenger demand remained resilient during the first six months of the year, particularly on routes to Europe and the US, where load factors exceeded 90 per cent on some destinations.
However, a shortage of available aircraft meant the airline could not deploy enough capacity to meet demand.
This, coupled with high fuel prices, saw the airline’s losses widen to Sh16.1 billion in the first half of the year, from Sh12.1 billion in the same period last year.
“The demand for Kenya Airways remains. Our biggest constraint has been having enough aircraft available at the right time and at the right cost to serve this demand,” KQ chief executive George Kamal said.
In the six-month period, Kenya Airways’ passenger traffic fell by nine per cent, largely due to reduced aircraft availability rather than a weakening market.
At the same time, the airline improved its cabin factor by four percentage points, helping push revenue up by nearly nine per cent to about Sh81 billion.
“When aircraft remains on the ground, capacity falls while fixed cost remains. And when capacity falls, we lose the opportunity to serve existing demand,” he said.
Three of Kenya Airways’ Boeing 787 Dreamliners were grounded for much of the period because of shortages of engine spare parts, reducing the airline’s ability to operate some of its key long-haul routes.
“When those aircraft are on the ground, we cannot sell seats,” Kamal said, adding that the decline in passenger numbers broadly tracked the capacity that the airline had lost.
The problem has been compounded by a wider crisis in the global aviation industry, where airlines are struggling with delayed aircraft deliveries, shortages of engines and spare parts, and longer turnaround times for maintenance.
Kenya Airways said supply chain disruptions had extended the time needed to source critical components, affecting fleet availability and operational reliability.
“Engine turnaround times have increased from about 90 days to more than 120 days, while aircraft manufacturers continue to grapple with large order backlogs,” KQ chairman Kiprono Kittony said.
The shortages have come at a particularly difficult time for the airline because the underlying commercial environment remains favourable.
Despite geopolitical disruptions and rising travel costs, Kenya Airways said passenger demand had remained strong.
On some Europe and US routes, load factors exceeded 90 per cent, signalling that the airline could potentially carry more passengers if it had sufficient aircraft to deploy.
The airline’s acting chief finance officer, Mary Mwenga, said the shortages meant Kenya Airways was missing out on potential revenue at a time when the carrier is trying to strengthen its finances and narrow its losses.
Kittony said total operating costs rose by 14 per cent, driven largely by a sharp increase in fuel prices and disruptions to operations.
Jet fuel prices rose 66 per cent during the period amid geopolitical tensions in the Middle East, resulting in a 32 per cent increase in Kenya Airways’ fuel costs.
The airline said between March and April, fuel prices reached $213 (Sh27,562) per barrel, contributing to a 72 per cent spike in its fuel costs at the height of the price surge.
The result is a double blow to the airline: it is spending more to operate while simultaneously losing revenue opportunities because aircraft are unavailable.
Even where strong passenger demand has enabled the airline to improve its load factors and revenue, higher fuel costs, longer flight routes and capacity shortages have eroded margins.
“Demand remains strong, but margin was significantly affected by fuel costs and longer routing,” Kamal said.
The capacity challenge has also been evident in the cargo business, although Kenya Airways has been able to partially offset the shortage by bringing in additional freighter capacity.
Cargo revenue rose 18 per cent during the period, while yields increased by 26 per cent. The airline deployed a Boeing 747 freighter to help address capacity constraints.
Kenya Airways says it is now working to restore its fleet and bring more aircraft back into service, betting that additional capacity will allow it to convert strong demand into higher revenue.
A Boeing 787-8 returned to operations in mid-July, while a Boeing 777-300ER was delivered and has also rejoined the airline’s operations.
