NAIROBI, Kenya– Kenya Airways’ recovery momentum has taken a fresh hit after the airline confirmed that two of its Boeing 787 Dreamliners have been out of service for months, erasing billions of shillings in potential earnings.
Chief Executive Allan Kilavuka disclosed that the prolonged grounding linked to delays in securing critical spare parts from manufacturers, including Boeing has forced the national carrier to cancel flights during what should have been its busiest travel period.
“Operationally we are struggling because of the grounded aircrafts,” Kilavuka said, estimating the loss at $15 million (Sh1.95 billion).
“We have lost an entire peak season.”
Early this year, Kenya Airways had three of its nine Dreamliners parked for similar reasons.
One has since returned to service, but the remaining two will only rejoin the fleet towards the end of the year, with one expected back in November and the other in December.
The grounding leaves KQ operating with 34 aircraft well short of its strategic fleet target of 50, which management says is the threshold needed to spread out fixed costs like maintenance and better absorb global market disruptions.
The airline has ambitions to add 16 planes to strengthen its position on both regional and long-haul routes.
Yet, Kilavuka cautioned that the global supply crunch in new aircraft means fresh orders from Boeing or Airbus could take up to seven years to fulfill.
The operational setback comes months after KQ reported its first half-year profit in over a decade. For the first six months of 2024, the carrier posted a Sh513 million net profit, reversing a Sh21.7 billion loss in the same period of 2023.
Management credited the turnaround to a 22 percent rise in revenue, stronger passenger demand, operational efficiencies, and a firmer shilling.
Even so, the airline remains in negative equity, with total liabilities still outweighing its assets a sign that while profitability has returned, the road to full financial stability remains long.
