South African Airways (SA, Johannesburg O.R. Tambo) has confirmed to ch-aviation that it has initiated legal proceedings against Kenya Airways over a contractual dispute arising from their commercial arrangements, describing the action as a "last resort" to protect its interests.

In a statement, SAA said it remained committed to its relationship with Kenya Airways and to constructive engagement and cooperation in areas of mutual commercial interest.

However, it said it had decided to pursue legal recourse after a dispute emerged over the terms of their commercial arrangements. SAA declined to provide further details, saying the matter was now sub judice.

According to the online newspaper TimesLIVE, SAA is seeking to recover about USD1.4 million from Kenya Airways, alleging the carrier breached codeshare and revenue-sharing agreements and failed to repay disputed surcharges and commissions.

SAA has asked the South Gauteng High Court in Johannesburg for leave to serve proceedings on Kenya Airways abroad, by email, or through the South African High Commission in Nairobi, according to the report.

ch-aviation has contacted Kenya Airways for comment.

According to TimesLIVE, SAA claims Kenya Airways owes USD1.12 million in unpaid YR/YQ carrier-imposed ticket surcharges for codeshare sectors flown between July 2022 and May 2024. YQ refers to fuel surcharges, while YR is a general surcharge imposed for other operational expenses.

It claims Kenya Airways began rejecting its billings from January 2023 after shifting from the agreed sector-based surcharge calculation to a journey-based proration method in October 2024.

The South African carrier also alleges that an audit of credit memos from August 2022 to May 2024 found Kenya Airways was overpaid USD256,342 in codeshare commissions because calculations used inward-billing data rather than the required outward-billing data.

The dispute stems from a Special Prorate Agreement (SPA) concluded in November 2021 and extended to November 2024, alongside a codeshare agreement.

According to TimesLIVE, SAA declared a formal dispute in June 2025 and sought arbitration, but Kenya Airways failed to respond, nominate an arbitrator, or participate.