Kenya Airways Faces 72% Fuel Cost Surge as Middle East Conflict Hits Operations

Kenya Airways aircraft

Nairobi—Kenya Airways says the Middle East conflict has pushed its fuel costs up by 72% in the first half of 2026, adding pressure to the airline as it also faces delays in aircraft parts and maintenance.

The airline, one of Africa’s largest carriers, said fuel now accounts for as much as 50% of its total costs, according to acting CEO George Kamal.

Kamal said the conflict has compounded existing challenges across the aviation industry, including delays in aircraft-parts deliveries, reduced aircraft availability and rising global inflation. These pressures are expected to weigh on the airline's revenue.

Aircraft Shortages Add to Pressure

Kenya Airways operates a relatively small fleet of about 40 aircraft, making delays in aircraft deliveries particularly disruptive.

“We have demand, every route we deploy … it's full so we need the aircraft as soon as possible, ” Kamal told journalists in Nairobi.

The airline is awaiting delivery of two Boeing 737 aircraft, while two others that were scheduled for delivery in April were rejected after failing inspection tests.

Kenya Airways is due to release its 2026 half-year results early next week.

Profitability Under Strain

The airline reported a pre-tax loss of 17.93 billion Kenyan shillings ($138.56 million) last year, reversing a rare profit recorded in the previous period as revenues weakened.

Kamal said the airline is reviewing its contracts and looking for ways to reduce costs, highlighting the tight margins in the aviation business.

“Our profit per seat is just $1.50 and we have to save every dollar we make.”

The fuel-price shock comes at a particularly challenging time for Kenya Airways as airlines globally contend with elevated operating costs and supply-chain constraints.

Kenya Airways’experience highlights the vulnerability of African airlines to global disruptions. Higher fuel prices, aircraft shortages and geopolitical tensions can quickly raise operating costs while limiting carriers’ ability to expand capacity even when passenger demand remains strong.

For Kenya Airways, restoring aircraft availability while controlling costs will be critical as it seeks to improve profitabiliTy

Source: Reuters

Reporting: Edwin Okoth

Writing: Elias Biryabarema

Editing: Alexander Winning& Joe Bavier