Photo | courtesy.
Kenya Airways (KQ) says it has lost billions of shillings after two of its Boeing 787 Dreamliner planes were grounded, making it harder for the airline to recover.
KQ CEO Allan Kilavuka said the loss which is about $15 million (Sh1.95 billion), came after spare parts from big manufacturers like Boeing were delayed. This forced the airline to cancel many scheduled flights.
“Operationally we are struggling because of the grounded aircraft,” Kilavuka said.“We are talking about billions of shillings because of the grounding. We have lost an entire peak season.”
At the start of the year, KQ had grounded three of its nine Dreamliners because of a shortage of spare parts.
Management says having 50 planes is important to cover costs like maintenance and to protect the airline from global shocks.
One plane has since returned to service, while the other two are expected back in November and December.Right now, KQ is flying 34 planes, far below its target of 50.
The airline is also planning to add 16 more aircraft to boost regional and international flights. But Kilavuka noted that shortages in the global aircraft market are slowing expansion. He said it could take more than seven years to get new Dreamliners and Airbuses if ordered today.
Despite these problems, KQ’s turnaround plan has shown progress. In the first half of 2024, the airline posted a profit of Sh513 million after tax. This was its first half-year profit since 2013, a big improvement from a Sh21.7 billion loss in the same period last year.
The profit was supported by more passengers, a 22 percent revenue jump, better operations, and a stronger shilling.
Still, Kenya Airways remains in negative equity, meaning its debts are more than its assets.
