Kenya Airways Faces 72% Surge in Fuel Costs Amid Middle East Conflict

Kenya Airways has reported a significant 72 percent increase in fuel costs during the first half of 2026, largely attributed to the ongoing conflict in the Middle East. The surge in global energy prices has directly impacted the national airline's operating expenses.

Fuel Prices and Operational Challenges

Before the conflict erupted in late February, Brent crude oil was trading around $70 per barrel. Prices spiked to nearly $120 at the peak of the crisis, driven by concerns over disruptions in the Strait of Hormuz, a critical oil shipping route. Although prices briefly stabilized near $70 in early July due to diplomatic efforts, renewed hostilities pushed prices back up to approximately $85 per barrel by mid-July.

Acting CEO George Kamal highlighted that fuel has become the largest cost component for Kenya Airways, accounting for about half of total expenses. The elevated fuel prices have thus placed considerable pressure on the airline's financial performance.

Fleet and Maintenance Issues

In addition to rising fuel costs, Kenya Airways is grappling with delays in aircraft maintenance due to slow deliveries of spare parts. This has affected fleet availability, a critical issue given the airline operates a relatively small fleet of 40 aircraft. Kamal emphasized strong passenger demand across all routes, underscoring the need for more aircraft to meet capacity.

The carrier is awaiting the delivery of two Boeing 737 planes, while two others scheduled for April were rejected after failing inspection tests. These setbacks, combined with global inflationary pressures, are expected to further challenge the airline's revenue and operating costs throughout the year.