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Kenya Airways CEO Outlines Plan to Double Cargo Revenue

Kenya Airways CEO Outlines Strategy to Double Cargo Revenue Amid Operational Challenges
Allan Kilavuka, Group Managing Director and CEO of Kenya Airways, has reaffirmed the airline’s vital role in Kenya’s economy despite facing significant financial and operational difficulties. In a recent opinion piece published in The Standard, Kilavuka addressed concerns about the airline’s viability following a sharp reversal from a net profit of KES 5.4 billion (USD 41.8 million) in 2024 to a loss of KES 12.15 billion (USD 94 million) in the first half of 2025.
Operational Setbacks and Financial Pressures
Kilavuka attributed the airline’s downturn to a combination of global disruptions and industry-specific challenges. Persistent post-pandemic supply chain issues, delays in aircraft parts and deliveries, and geopolitical shocks have affected airlines worldwide, including Kenya Airways. A significant blow came from the grounding of three out of nine Boeing 787-8 aircraft for engine overhauls, reducing the airline’s capacity by 20% and resulting in an estimated revenue loss of KES 12.6 billion (USD 97.5 million) over six months. These difficulties were further exacerbated by the collapse of a planned partnership with South African Airways, complicating the airline’s recovery efforts.
Despite these setbacks, Kilavuka noted that Kenya Airways’ fixed operational costs—covering personnel, maintenance, depreciation, and airport fees—have remained constant, intensifying financial strain. The airline’s challenges reflect broader industry trends, with other carriers such as Air Mauritius also experiencing grounded fleets and operational disruptions.
Strategic Reforms and Revenue Diversification
In response to these challenges, Kenya Airways is accelerating reforms aimed at ensuring long-term sustainability. Kilavuka outlined a comprehensive strategy focused on diversifying revenue streams, with particular emphasis on expanding the airline’s maintenance, repair, and overhaul (MRO) services. Kenya Airways operates one of the few MRO facilities in Africa certified by the European Union Aviation Safety Agency (EASA), servicing regional and international carriers including Uganda Airlines, Air Tanzania, and RwandAir.
A central element of the recovery plan is to double the proportion of revenue generated from cargo operations, increasing it from 10% to 20%. To support this objective, Kenya Airways has acquired two Boeing 737-800(SF) freighters to modernize its ageing cargo fleet, with plans for further aircraft acquisitions to meet growing airfreight demand.
Kilavuka also emphasized the airline’s broader economic significance, highlighting its contribution of USD 2.6 billion to Kenya’s GDP and its support for hundreds of thousands of jobs. Kenya Airways remains a critical conduit for the country’s agribusiness and manufacturing exports, transporting goods valued at over KES 16 billion (USD 124 million) in 2024.
Future Outlook and Regional Integration
Looking ahead, Kilavuka stressed the importance of strategic alliances and consolidation within Africa’s aviation sector. He argued that integrating key aviation assets—such as hubs, ground services, catering, and training centers—under flagship carriers can create economies of scale and enhance operational resilience, providing a buffer during periods of low passenger demand.
“Kenya Airways has faced formidable turbulence. Yet its compass remains true, and with sustained strategic reforms, it shall continue to ascend,” Kilavuka affirmed, underscoring the airline’s commitment to overcoming current challenges and securing its future as a national and regional asset.

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