Commercial Aviation
Kenya Airways Plans Cargo Revenue Growth with Widebody Freighters
Kenya Airways targets doubling cargo revenue by 2026 through fleet expansion with Boeing 767 and 777 freighters and digital logistics upgrades.

This article summarizes reporting by Air Cargo News.
Kenya Airways Targets Cargo Revenue Doubling with Widebody Expansion and Tech Overhaul
Kenya Airways (KQ) has unveiled an ambitious strategy to double the revenue contribution of its cargo division by the end of 2026. According to reporting by Air Cargo News, the Nairobi-based carrier is implementing a “cargo-first” approach designed to insulate the airline from passenger market volatility while capitalizing on the surging demand for air freight across Africa and Asia.
The airline’s primary objective is to increase cargo’s share of total group revenue from its current 10% to 20%. To achieve this, KQ is executing a two-pronged strategy: a significant fleet expansion involving widebody freighters and a comprehensive digital transformation of its logistics operations.
Fleet Strategy: The Bridge to the Triple Seven
A central component of the expansion plan is the introduction of widebody freighter capacity to complement the airline’s existing narrowbody fleet. Air Cargo News reports that Kenya Airways plans to introduce its first Boeing 767 freighter by the end of the first quarter of 2026, with a second aircraft expected to follow shortly thereafter.
However, the 767 serves as a strategic interim solution rather than the ultimate goal. Fitsum Abadi Gebrehawaria, the Cargo Director at Kenya Airways, indicated that while the 767-300 serves their immediate needs, the long-term vision focuses on larger capacity.
“We may transition with 767-300 but with our strategy between now and 2030, we are planning to have three 777Fs,” Abadi stated in the report.
The decision to utilize the 767 as a “bridge” aircraft highlights a broader industry challenge: the scarcity of available widebody freighters. By securing 767s now, KQ can immediately capture market share on high-volume routes while waiting for the preferred Boeing 777 Freighters to become available. The airline aims to operate three 777Fs by 2030 to handle heavier payloads and longer ranges.
Current Capabilities and Regional Focus
Currently, the airline operates a dedicated freighter fleet consisting of two Boeing 737-300Fs and two Boeing 737-800Fs. The latter were introduced in 2024 to offer extended range and capacity. These narrowbody aircraft will continue to serve critical regional hubs such as Lagos, Dakar, and Johannesburg, supporting the African Continental Free Trade Area (AfCFTA).
Digital Transformation and Infrastructure
Beyond hardware, Kenya Airways is investing heavily in software to modernize its cargo operations. According to the source report, the airline is acquiring industry-standard systems focused on three core operational pillars:
- Capacity Planning: Optimizing how cargo space is utilized across the fleet.
- Real-Time Tracking: Enhancing visibility for customers throughout the shipping process.
- Yield Management: Maximizing revenue per unit of cargo.
Furthermore, the airline is integrating with the Air Cargo Community System at Jomo Kenyatta International Airport (JKIA). This integration aims to streamline data exchange between various stakeholders in the supply chain, reducing friction and improving turnaround times.
Group MD and CEO Allan Kilavuka emphasized the importance of these investments, noting that digital solutions are essential for automating processes and improving customer efficiency.
Market Context and Financial Turnaround
The push for cargo expansion comes on the heels of a significant financial turnaround for the airline. In the 2024 fiscal year, Kenya Airways recorded its first profit in 11 years, posting KSh 5.4 billion (approximately $41.8 million). During that period, cargo tonnage grew by 25%, and cargo revenue increased by 20%, validating the decision to prioritize freight.
The new widebody aircraft are specifically intended to target the Asia-Pacific market. The airline plans to capture demand from manufacturing hubs like Guangzhou and Hong Kong. Operations may include technical stops in the Middle East to uplift perishable goods before returning to Africa with e-commerce cargo, effectively balancing trade flows.
AirPro News Analysis
The strategic pivot by Kenya Airways reflects a broader trend among African carriers seeking to hedge against the cyclical nature of passenger travel. By targeting a 20% revenue share from cargo, KQ is attempting to replicate the successful diversification model seen in rival carriers like Ethiopian Airlines.
However, the reliance on a “bridge” fleet of 767s suggests that supply chain constraints in the aerospace sector are dictating strategy as much as market demand is. While the 767 is a capable freighter, the operational complexity of managing a mixed fleet of 737s, 767s, and eventually 777s will require rigorous maintenance and crew training protocols. If executed well, this move could position Jomo Kenyatta International Airport as a formidable rival to Addis Ababa in the battle for the continent’s e-commerce logistics.
Sources
Sources: Air Cargo News
Photo Credit: Kenya Airways
Route Development
Portland Airport Completes $2 Billion Terminal Expansion
PDX completes its $2B, 1M sq ft terminal expansion, doubling capacity with a mass timber roof and all-electric heat pump system.

The Port of Portland and ZGF Architects LLP officially opened the second and final phase of the $2 billion main terminal expansion at Portland International Airports (PDX) on June 30, 2026. The completion of the one million-square-foot project doubles the passenger capacity of the airport and concludes five years of phased construction.
According to a press release issued by ZGF Architects, the expansion represents the largest public infrastructure project in Oregon’s history. The facility remained fully operational throughout the construction process, which was executed by a project team including the Hoffman Skanska Joint Venture, KPFF, Arup, PAE, and Swinerton.
Architectural and structural engineering features
A defining feature of the renovated terminal is a nine-acre prefabricated mass timber roof spanning the facility. The structure is engineered for high seismic resilience, specifically designed to withstand a 9.0 magnitude earthquake originating from the Cascadia Subduction Zone.
The terminal also establishes new environmental benchmarks for aviation infrastructure. The design incorporates an all-electric ground-source heat pump system, which the architects state will achieve a 50 percent reduction in energy use per square foot compared to previous operations.
Phase two enhancements and passenger experience
Following the opening of the project’s first phase in 2024, the newly completed second phase introduces a redesigned arrival sequence. The layout features new exit lanes on the north and south ends of the terminal to streamline connections between concourses. Additional upgrades include a new descent path to the baggage claim area, expanded post-security gathering spaces, skylit all-user restrooms, and an updated selection of local retail and dining options.
Port of Portland Executive Director Curtis Robinhold highlighted the regional focus of the construction effort and the materials utilized throughout the terminal.
“Thousands of local workers brought our shared vision to life, using locally sourced materials and setting a new bar for how it should be done,” Robinhold said. “I couldn’t be prouder of this special place we built together.”
Sharron van der Meulen, managing partner at ZGF Architects, noted that the terminal is designed to adapt to future aviation demands while serving as a gateway to the Pacific Northwest.
Industry recognition and operational impact
Since the initial phase debuted in 2024, the PDX terminal design has garnered multiple international accolades. These include the Prix Versailles World’s Most Beautiful Airport award, Fast Company’s Best Design in North-America distinction, and recognition from the Holcim Foundation for Sustainable Construction.
AirPro News analysis
We view the completion of the PDX terminal as a significant case study for mid-sized and large hub airports facing capacity constraints. Executing a $2 billion, one million-square-foot expansion while maintaining uninterrupted flight operations demonstrates a highly coordinated phasing strategy. The integration of a mass timber roof and an all-electric heat pump system aligns with the broader aviation industry’s push toward decarbonizing ground infrastructure, providing a viable template for future terminal modernization projects across North America.
Sources: ZGF Architects LLP via PR Newswire
Photo Credit: ZGF Architects LLP
Aircraft Orders & Deliveries
Air Peace Takes Delivery of First Embraer E175 in 2026
Air Peace received its first Embraer E175 on June 30, 2026, targeting unserved intra-African routes identified in Embraer’s 2026 connectivity report.

Nigerian carrier Air Peace took delivery of its first factory-new Embraer E175 on June 30, 2026, marking a strategic fleet expansion aimed at capturing underserved regional routes across West and Central Africa.
The handover, announced in a press release by Embraer from its São José dos Campos facility in Brazil, introduces the regional jet to an existing fleet that includes the larger Embraer E195-E2, the smaller ERJ145, and Boeing 777 widebodies. The delivery aligns with a documented gap in intra-African connectivity, which the manufacturer notes has widened over the past year.
Fleet optimization and order adjustments
The arrival of the E175 follows a series of strategic adjustments to the airline’s order book. According to ch-aviation, Air Peace originally placed a firm order for five E175 aircraft on September 14, 2023. The airline subsequently modified its capacity requirements on July 29, 2025, converting three of those airframes to the larger E195-E2 model while retaining two E175s on firm backlog.
The addition of the E175 provides the carrier with a right-sized asset for thinner routes. Dr. Allen Onyema, Chairman and CEO of Air Peace, stated in the Embraer release that the aircraft will increase operational flexibility and market reach as the airline strengthens its leadership position in the region.
Addressing the intra-African connectivity gap
The deployment of the E175 targets specific network expansion goals. Aviation Week reported that the airline intends to use the new aircraft to boost frequencies on established domestic sectors and introduce flights to four new destinations across the continent.
This expansion strategy corresponds with data from Embraer’s African Connectivity Report 2026. The manufacturer identified 55 intra-African city pairs currently lacking direct air services, representing an increase from 45 unserved pairs in 2025.
“This delivery highlights the continued demand for right-sized aircraft, with airlines seeking to expand connectivity while maintaining high levels of efficiency and service,” said Arjan Meijer, President and CEO of Embraer Commercial Aviation.
AirPro News analysis
We view the integration of the E175 into the Air Peace fleet as a pragmatic approach to the unique challenges of the West African aviation market. By operating a mixed fleet of ERJ145s, E175s, and E195-E2s, the airline can closely match capacity to fluctuating demand on regional sectors without incurring the higher trip costs of larger narrowbody aircraft. The 2025 decision to upgauge three E175 orders to E195-E2s suggests the carrier is experiencing robust growth on trunk routes, while the retention of the E175s ensures it maintains the capability to pioneer new, thinner city pairs across the continent.
Sources: Embraer
Photo Credit: Embraer
Aircraft Orders & Deliveries
SAS Orders 18 Airbus A330-900neo in $10 Billion Deal
Scandinavian Airlines finalizes 18 firm A330-900neo orders, part of a 40-widebody plan valued at over $10 billion at list prices.

Scandinavian Airlines (SAS) finalized a firm order for 18 Airbus A330-900neo aircraft on June 30, 2026, anchoring a broader widebody fleet expansion valued at over $10 billion at list prices.
The agreement, signed during a ceremony in Copenhagen, Denmark, represents the largest single capital investment in the history of the carrier. According to official statements from Airbus and SAS, the 18 firm orders are part of a strategic procurement plan encompassing up to 40 widebody airframes. This acquisition is designed to support long-haul network growth and modernize operations following the airline’s recent financial restructuring.
Fleet modernization and aircraft specifications
Data from aviation intelligence provider ch-aviation indicates the total 40-aircraft package includes the 18 firm Airbus A330-900neo jets, 10 options for the same variant, and 12 additional Airbus A330-300 aircraft secured to facilitate near-term capacity increases.
The Airbus A330-900neo is powered exclusively by Rolls-Royce Trent 7000 engines. Airbus states the aircraft delivers a 25 percent reduction in fuel consumption, carbon dioxide emissions, and operating costs per seat compared to previous-generation competitors.
While Airbus lists the maximum theoretical range of the A330neo at 8,100 nautical miles, SAS plans to configure its specific Airbus A330-900neo fleet with 287 to 303 seats in a three-class layout. This configuration yields an operational range of 7,350 nautical miles. The supplementary Airbus A330-300s will feature a 250 to 290-seat configuration.
Strategic restructuring and alliance transition
The widebody acquisition follows a period of significant corporate reorganization for SAS. The carrier recently transitioned from the Star Alliance to the SkyTeam alliance, a move supported by a major equity investment from Air France-KLM.
This long-haul investment complements the airline’s regional and short-haul renewal efforts. In 2025, SAS placed an order for 55 Embraer E195-E2 regional aircraft and continues to integrate Airbus A320neo narrowbodies into its European network.
SAS President & CEO Anko van der Werff noted the historical significance of the deal. He stated the airline is investing in its next chapter after 80 years of connecting Scandinavia with the global market. Airbus Executive Vice President of Sales for Commercial Aircraft Benoît de Saint-Exupéry highlighted the operational synergies the new airframes will provide alongside the existing SAS Airbus fleet.
AirPro News analysis
We view this $10 billion commitment as a definitive signal of SAS’s post-restructuring stabilization. By selecting the Airbus A330-900neo rather than transitioning to a mixed-manufacturer widebody fleet, the airline minimizes crew training costs and maintenance overhead. The inclusion of 12 older-generation Airbus A330-300s is a pragmatic bridge strategy. It allows SAS to capture immediate long-haul market demand while awaiting the delivery of the newly ordered neo variants. The alignment with SkyTeam partners like Air France-KLM likely influenced the decision to maintain a heavily Airbus-oriented long-haul profile, ensuring smoother operational integration across the alliance network.
Sources: Airbus
Photo Credit: Airbus
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