Kenya Airways Focuses on Fleet Upgrades and Cargo Expansion

Kenya Airways plans to invest in mid-life fleet upgrades and fuel-efficiency retrofits while ramping up its cargo operations, following a strong financial turnaround in the 2024 fiscal year. Acting CFO Mary Mwenga outlined the strategy in an interview with Nairobi-based Soko Directory, emphasizing a shift toward financial discipline over costly fleet renewal.

“We’re aligning capacity with market reality,” Mwenga said. “The focus is agility without overexposure.” The airline will also seek flexible lease terms to better match seasonal demand.

According to ch-aviation data, leases on several of the airline’s nine Boeing 737-800s are set to expire between 2026 and 2030. Kenya Airways also leases three of its nine Boeing 787-8s, with two leases ending in 2027. Four aircraft—three 787-8s and one 737—are currently undergoing maintenance amid global supply chain and engine part shortages. Additionally, the carrier is phasing out its Embraer E190 regional jets, with nine of the 15 currently out of service.

The airline posted an after-tax profit of KES5.4 billion (USD41.8 million) in FY2024, reversing a KES22.6 billion (USD175 million) loss in 2023. Revenue rose 6% to KES188 billion (USD1.45 billion), with cargo tonnage up 25% and passenger numbers increasing by 4%.

Mwenga credited the turnaround to Project Kifaru, a multi-year restructuring plan focused on cost control, digital transformation, strategic outsourcing, and AI-driven operations. The airline has reduced debt, stabilized cash flow through fuel hedging, and strengthened partnerships, particularly with KLM. Going forward, Kenya Airways will deepen its cargo focus and enhance route flexibility using AI and smart leasing.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com