Kenya Airways nears deal for Boeing 777 freighter lease

Kenya Airways is close to a deal to lease a Boeing 777 freighter as it works to grow its cargo business, chief executive George Kamal said. Speaking at a half-year briefing, he said the carrier is aiming for a 40% share of the cargo market, up from its current 11%.

The airline had earlier arranged to use a Boeing 747-400 freighter previously flown by Moldovan carrier Terra Avia, but dropped that plan after fuel prices jumped sharply earlier this year. Kamal said the larger aircraft cost too much to operate profitably and did not suit the airline's needs.

Kenya Airways currently relies on two Boeing 737-800s and two older 737-300s for freight, giving it around 70 tonnes of cargo capacity. Talks are underway to secure a 777 freighter on a long-term lease, Kamal said, which would add about 100 tonnes of capacity. He did not name the lessor or confirm which freighter variant was under discussion.

Cargo hold space on passenger aircraft has shrunk, but the airline still reported an 18% rise in cargo revenue for the first half of the year, reaching 8.8 billion Kenyan shillings, about $68 million. Kamal called the freight business a strong growth area for the airline going forward.