Kenya Airways will review “every single contract” as it seeks to cut costs after the Middle East conflict pushed its fuel costs up by 72% in the first half of 2026.
Acting Chief Executive Officer George Kamal said the airline had been heavily affected by the conflict, with fuel now accounting for as much as 50% of its total costs.
“We have been heavily impacted by the war with the fuel prices rising by 72% in the current half-year,” stated Kamal.
The higher fuel bill comes as Kenya Airways also faces delays in receiving aircraft spare parts, reduced aircraft availability and a global rise in inflation, all of which Kamal said would affect the airline’s revenue.
Kenya Airways Reviews Contracts to Cut Costs
Kamal said Kenya Airways was examining all its contracts as it looks for savings across the airline.
“We are reviewing every single contract at KQ and finding how to save every dollar because our profit per seat is just $1.50 and we have to save every dollar we make,” he said.
Also Read: Kenya Airways to Triple Fleet to 100 Aircraft; Unveils Timelines
The move comes as the airline works to manage rising operating costs while maintaining its existing network and meeting passenger demand.
Kamal said Kenya Airways was particularly affected by the global backlog in aircraft supplies because of its relatively small fleet of about 40 aircraft.
The airline is awaiting delivery of two Boeing 737 aircraft, while two others that were expected to arrive in April were rejected after failing inspection tests, according to Kamal.
The limited aircraft availability is creating a challenge for the airline as it seeks to meet demand.
“We have demand, every route we deploy … it’s full, so we need the aircraft as soon as possible,” Kamal said.
The delays in aircraft parts and maintenance have therefore added to the pressure on the carrier as it deals with higher fuel expenses.
KQ Results Due Next Week
Kenya Airways is expected to announce its 2026 half-year financial results early next week.
The airline reported a pre-tax loss of KSh17.93 billion ($138.3 million) for the year, reversing the first pre-tax profit it had recorded in more than a decade in 2024.
Also Read: Kenya Airways Addresses Possible Route Cancellations Amid Rising Fuel Costs
The airline said foreign exchange gains supported the 2024 performance after the Kenyan shilling strengthened sharply against the US dollar, a boost that did not repeat in 2025.
Revenue fell 14% to KSh161.47 billion in 2025 as available capacity declined by 18%, largely because three Boeing 787-8 Dreamliner aircraft were temporarily grounded due to global supply chain disruptions and shortages of engines and spare parts.
The reduced aircraft availability limited the airline’s ability to add seats and operate at planned levels despite strong demand across its network.
Kenya Airways has previously said customer demand remained strong throughout the year, but aircraft shortages, maintenance delays and wider industry supply chain challenges prevented the carrier from fully taking advantage of the higher demand, contributing to the weaker financial performance.
At the same time, the conflict in the Middle East has reshaped air travel patterns, with some passengers avoiding traditional transit hubs in the Gulf and rerouting through Nairobi instead.
Kenya Airways has said this helped boost demand from Europe, the United States, and Asia, although aircraft shortages and maintenance delays prevented the carrier from fully capitalizing on the increased traffic.
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