{"id":107538,"date":"2025-08-15T14:30:19","date_gmt":"2025-08-15T11:30:19","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=107538"},"modified":"2025-08-16T09:35:27","modified_gmt":"2025-08-16T06:35:27","slug":"airplane-parts-shortage-costs-kq-billions-in-losses","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2025\/08\/airplane-parts-shortage-costs-kq-billions-in-losses\/","title":{"rendered":"Airplane parts shortage costs KQ billions in losses"},"content":{"rendered":"<p data-pm-slice=\"1 1 []\"><strong>NAIROBI, Kenya, Aug 15 \u2013 National carrier Kenya Airways (KQ) says the grounding of two of its Boeing 787 Dreamliners has cost the airline billions of shillings in lost revenue, further straining its recovery efforts.<\/strong><\/p>\n<p>CEO Allan Kilavuka said the loss, estimated at about $15 million (Sh1.95 billion), was largely due to delayed spare parts from key manufacturers, including Boeing, forcing the airline to cancel several scheduled flights.<\/p>\n<p>\u201cOperationally we are struggling because of the grounded aircraft,\u201d Kilavuka said.<\/p>\n<p>\u201cWe are talking about billions of shillings because of the grounding. We have lost an entire peak season.\u201d<\/p>\n<p>At the start of the year, KQ had grounded three of its nine Dreamliners due to an inadequate supply of spare parts from major global suppliers.<\/p>\n<p>The airline has since returned one to service, with the remaining two expected to resume operations in November and December once parts are delivered.<\/p>\n<p>The carrier currently operates 34 aircraft, far below its target fleet size of 50, which capacity management says is crucial for covering fixed costs, such as maintenance, and cushioning against global shocks.<\/p>\n<p>Kenya Airways is also eyeing the addition of 16 more aircraft to boost regional and international competitiveness.<\/p>\n<p>However, Kilavuka noted that aircraft shortages in the global market are delaying expansion plans.<\/p>\n<p>According to Kilavuka, it would take upwards of seven years if it were to order new Dreamliners and Airbuses from Boeing and Airbus.<\/p>\n<p>KQ has been on an aggressive turnaround plan. In the first half of 2024, the airline posted a Sh513 million profit after tax, its first half-year profit since 2013, reversing a Sh21.7 billion loss recorded in the same period last year.<\/p>\n<p>The rebound was driven by a 22 per cent revenue increase, higher passenger numbers, operational efficiencies, and a stronger shilling.<\/p>\n<p>Despite the improvement, Kenya Airways remains in negative equity, with liabilities exceeding its assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NAIROBI, Kenya, Aug 15 \u2013 National carrier Kenya Airways (KQ) says the grounding of two of its Boeing 787 Dreamliners has cost the airline billions of shillings in lost revenue, further straining its recovery efforts. CEO Allan Kilavuka said the loss, estimated at about $15 million (Sh1.95 billion), was largely due to delayed spare parts [&hellip;]<\/p>\n","protected":false},"author":14438,"featured_media":107542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1383,687],"tags":[23749,8424,934,1252,15137,6914],"coauthors":[9476],"class_list":["post-107538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aviation","category-top-stories","tag-airplane","tag-costs","tag-featured","tag-kq","tag-parts","tag-shortage"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Airplane parts shortage costs KQ billions in losses - Capital Business<\/title>\n<meta name=\"description\" content=\"NAIROBI, Kenya, Aug 15 \u2013 National carrier Kenya Airways (KQ) says 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