Kenya Airways has reported a net loss of KSh17.2 billion for the financial year ending December 31, 2025, reflecting a challenging operating environment driven largely by global aviation supply chain disruptions.
Fleet Grounding Hits Capacity and Revenue
The airline’s performance was significantly affected by the temporary grounding of three Boeing 787-8 Dreamliner aircraft due to limited engine availability and ongoing global supply chain constraints.
This led to an 18% decline in capacity, measured in Available Seat Kilometres (ASKs), to 13,349 million. The reduced capacity directly impacted passenger volumes, which dropped by 13%, contributing to a 14% decline in revenue, a decrease of KSh27 billion.
Total revenue for the year stood at KSh161 billion.
Operating Losses Despite Cost Controls
Operating costs fell by 3% to KSh167 billion, largely due to reduced operational activity and cost containment measures. However, the savings were insufficient to offset declining revenues and the cost burden of grounded aircraft.
The Group recorded an operating loss of KSh5.6 billion, culminating in a net loss after tax of KSh17.2 billion
Kenya Airways Posts KSh17.2 Billion Loss in FY2025 Amid Fleet Constraints
Leadership Cites External Pressures, Strong Demand
Chairman Kiprono Kittony emphasized that the airline’s performance should be viewed within the context of global industry challenges rather than weak demand.
“This was driven primarily by global supply chain disruptions and not a lack of demand. The appetite for travel remains strong,” he noted.
Acting Group Managing Director and CEO George Kamal added that the airline operated in a complex macroeconomic environment marked by elevated fuel and labour costs, geopolitical tensions, and structural challenges across Africa’s aviation sector.
Industry Recovery Faces Persistent Headwinds
According to International Air Transport Association, global passenger traffic is projected to grow by 4.9%, while cargo volumes are expected to rise by 3.1%, signaling a steady recovery.
However, the industry continues to grapple with aircraft delivery delays, engine shortages, and supply chain disruptions. Within Africa, high operating costs and infrastructure limitations remain key challenges.
Cargo performance for the airline softened during the year, reflecting slower global trade and evolving tariff regimes.
Macroeconomic Pressures and Emerging Risks
The Kenyan shilling remained relatively stable in 2025, in contrast to the volatility experienced in 2024.
However, geopolitical tensions in the Middle East pose ongoing risks to the aviation sector, particularly through fuel price volatility and potential airspace restrictions that could lead to longer flight routes and increased fuel
Strategic Priorities for Recovery
Looking ahead, Kenya Airways is prioritizing operational recovery and long-term sustainability through several key initiatives:
Fleet Restoration: Returning grounded aircraft to service to boost capacity and revenue
Cost Discipline: Enhancing efficiency and maintaining strict cost controls
Capital Raising: Strengthening liquidity, supporting fleet expansion, and diversifying revenue streams
Kamal noted that the airline is focused not only on recovery but also on reinvention, positioning itself as a more resilient and agile carrier.
A Strategic National Asset
Despite the financial setback, management reaffirmed the airline’s critical role in supporting trade, tourism, and regional integration.
“Kenya Airways is more than an airline; it is a key enabler of economic connectivity across Africa and globally,” said Kamal.
As the carrier navigates current turbulence, its leadership remains optimistic about long-term growth, underpinned by strong travel demand and its strategic importance to Kenya and the wider region.