Kenya Airways has reported a KSh17.2 billion loss after tax for the financial year ending December 31, 2025, with performance weighed down by global aviation supply chain disruptions that constrained fleet availability and reduced capacity.
The airline’s chairman, Kiprono Kittony, said the results reflect an exceptionally challenging operating environment rather than weak demand.
“While our financial performance reflects a challenging year, it is important to recognise that this was driven primarily by global supply chain disruptions and not a lack of demand. The appetite for travel remains strong,” he said.
Capacity Constraints Hit Revenue
The airline’s operations were significantly impacted by the temporary grounding of three Boeing 787-8 Dreamliner aircraft due to engine shortages and delays in global supply chains.
This led to an 18 percent drop in capacity, with Available Seat Kilometres (ASKs) declining to 13.3 billion.
As a result:
- Passenger numbers fell by 13 percent
- Revenue declined by 14 percent (KSh27 billion)
- Total revenue stood at KSh161 billion
The reduced fleet availability disrupted key routes, limiting the airline’s ability to fully capitalize on strong travel demand across both regional and international markets.
Operating Costs and Loss Position
Operating costs declined by 3 percent to KSh167 billion, largely due to reduced flight activity and cost containment measures.
However, the airline still recorded an operating loss of KSh5.6 billion, highlighting the impact of idle capacity and ongoing fixed costs associated with grounded aircraft.
Industry Headwinds Persist
According to Acting Group Managing Director and CEO George Kamal, the global aviation sector continued its recovery in 2025 but faced persistent structural challenges.
These included:
- Aircraft delivery delays
- Engine shortages
- Supply chain disruptions
- Elevated fuel and labour costs
- Geopolitical uncertainty
“Kenya Airways operated in a complex macroeconomic landscape marked by elevated input costs and ongoing geopolitical uncertainty,” Kamal said.
He added that while international passenger demand remained strong, cargo performance softened due to slower global trade and shifting tariff regimes.
Macroeconomic Pressures
The airline also operated in a mixed macroeconomic environment.
While the Kenya shilling remained relatively stable in 2025, the sector faced risks from geopolitical tensions, particularly in the Middle East, which could impact fuel prices and airspace availability.
Such disruptions could force airlines to take longer routes, increasing fuel consumption and operating costs.
Strategic Focus for Recovery
Looking ahead, Kenya Airways has outlined a recovery strategy focused on restoring operational capacity and strengthening financial resilience.
Key priorities include:
Fleet Restoration
The airline aims to return grounded aircraft to service, unlocking additional capacity and revenue potential.
Cost Discipline
Management will continue to prioritize efficiency, cost control, and cash conservation measures.
Capital Raising
Plans are underway to raise capital to improve liquidity, support fleet expansion, and diversify revenue streams.
Industry Outlook
According to the International Air Transport Association (IATA), global passenger traffic is projected to grow by 4.9 percent, while cargo volumes are expected to increase by 3.1 percent, pointing to a steady recovery trajectory for the aviation sector.
Kamal said the airline is focused on both short-term stabilisation and long-term transformation.
“We are taking deliberate steps to stabilise the business in the near term while laying the foundation for long-term resilience. Our focus is not just recovery, but reinvention,” he said.
Strategic National Role
Beyond financial performance, Kenya Airways continues to position itself as a critical enabler of economic activity.
The airline plays a key role in facilitating trade, tourism, and regional integration across Africa and global markets.
“Kenya Airways is more than an airline; it is a critical enabler of trade, tourism, and regional integration,” Kamal said.
Despite current turbulence, the airline remains optimistic about long-term growth prospects, supported by strong demand fundamentals and its strategic position within Africa’s aviation ecosystem.
