Kenya Airways posts $124m half-year loss amid fuel cost surge

Kenya Airways posted a net loss of roughly KShs16.1 billion ($124 million) for the first six months of the year. Rising fuel costs and maintenance-related expenses weighed heavily on its finances.

Revenue rose 9% to KShs81 billion, which the airline called its second-strongest half-year performance. Total expenditure climbed 14% to nearly KShs92 billion, driven largely by a 32% increase in fuel costs. According to the airline, conflict in the Middle East pushed up fuel prices after an initially strong start to the year.

Capacity fell 9% during the period. The airline said shortages of spare parts and longer maintenance lead times had also added pressure on margins.

Despite the loss, Kenya Airways pointed to the return of a Boeing 777-300ER and a 787-8 to active service as a positive sign for fleet availability. The 787 underwent a D-check at the carrier's own maintenance facilities, the airline said.

Chief executive George Kamal said the company had entered the year with strong momentum before the fuel price spike disrupted its trajectory. Chair Kiprono Kittony said the airline's priorities going forward include cost control, cash conservation, restoring fleet capacity, reducing leverage, and completing a planned capital raise meant to put the company on a more sustainable financial footing.

Kittony said the airline remained confident in its long-term prospects despite the difficult half-year results.