A KQ Boeing Dreamliner at the Jomo Kenyatta International Airport. [ Elvis Ogina, Standard]
Kenya Airways’ losses widened to Sh16.1 billion as rising jet fuel prices, aircraft availability challenges and higher operating costs continued to weigh on the national carrier’s financial performance.
The loss increased from Sh12.2 billion recorded in the previous reporting period, despite signs of recovery in passenger demand and revenue generation.
Kenya Airways said jet fuel prices rose by 66 per cent during the period, largely driven by geopolitical tensions in the Middle East. The increase pushed the airline’s fuel costs up by 32 per cent, putting further pressure on its margins.
The carrier also continued to grapple with global supply chain disruptions that affected fleet availability. Shortages of critical aircraft spare parts, longer lead times and delays in component availability disrupted operations and reduced the number of aircraft available for service.
Total operating costs rose by 14 per cent during the period, outpacing the airline’s ability to absorb the additional expenses through revenue growth.
Despite the financial challenges, Kenya Airways said its underlying commercial performance remained encouraging, citing strong demand and improved revenue generation.
According to the National carrier, passenger traffic declined by nine per cent, but the airline recorded a four-percentage-point improvement in its cabin factor, indicating better utilisation of available seats. The carrier also benefited from stronger average fares.