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