Kenya Airways’ (KQ) losses are projected to widen in the half-year to June 2026, as a 72 percent surge in fuel costs due to the Middle East conflict compounded the impact of prolonged aircraft groundings and maintenance delays.

The national carrier said its operating environment has worsened this year due to the US-Israel war against Iran, which has not only raised its fuel consumption due to rerouting of aircraft, but also raised its spending on fuel by up to 72 percent.

Fuel costs now account for up to 55 percent of the carrier’s costs, up from about 40 percent last year, compounding the effects of prolonged fleet groundings that began last year due to a global aircraft parts shortage.

“The fuel price increase was significant. We have seen a 72 percent price increase in fuel prices since the beginning of the war,” acting CEO George Kamal said.

The new rise in fuel costs is projected to squeeze the carrier into deeper losses this year, delaying its efforts to return to profit as it seeks a strategic investor to expand its operations.

KQ will release its half-year performance next week. Mr Kamal revealed that its revenues have improved compared to the first half of 2025, supported by growing demand and improved load factors on its long-haul routes to European and US destinations.

The carrier’s revenues in the half-year to June 2025 dropped by 18 percent to Sh74.5 billion from Sh91.4 billion a year earlier, squeezed by the prolonged grounding of its fleet, reducing its available seat capacity.

Its net earnings slid into a loss of Sh12.2 billion from a profit of Sh513 million the previous year, as costs posted a near-flat decrease to Sh86.7 billion from Sh90.9 billion a year earlier.

Last year, the carrier said it operated at about 20 percent less capacity, with at least three of the largest planes in its fleet at the time—the Boeing 787 Dreamliners—being down for maintenance throughout the year.

This year, the carrier has had about nine of its 34 airplanes grounded, including two Dreamliners and two Boeing 737s, further compounding its operational challenges.

Despite the challenges, KQ has reported improved demand and passenger numbers, as the Middle East conflict diverted many passengers previously lifted by giant Gulf carriers through Nairobi and Africa.

Its load factor—the percentage of seats taken up by paying customers—on major routes to Europe and the US has persistently been above 90 percent since the war broke out, up from an average of 70 percent last year, Kamal said.

Demand on intra-African routes also remained buoyant, with load factors averaging 75 percent, defying the rise in air fares caused by the increment in fuel costs.

“We are not struggling on demand [on intra-African routes]; we are struggling on capacity and aircraft. We need aircraft,” said Mr Kamal.

The capacity constraints have forced the carrier to suspend some intra-Africa routes and reduce frequency on others. Direct flights to Douala, Cameroon, for instance, were suspended in June, and the Abidjan route was reduced from six weekly flights to 3 to manage the shrinking capacity.

vogweno@ke.nationmedia.com