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Kenya Airways has plunged into a Sh12 billion loss for the first half of 2025, reversing a Sh513 million profit recorded in the same period last year, after aircraft groundings and lower passenger numbers hurt revenue.
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The airline attributed the setback to the grounding of three Boeing 787-8 Dreamliners — about a third of its long-haul fleet — caused by supply chain issues and engine shortages. Passenger traffic dropped 14 percent, while capacity shrank 16 percent. Revenue fell 19 percent to Sh75 billion, down from Sh91 billion a year earlier.
Fleet ownership costs rose 29 percent due to asset revaluation and the arrival of a new Boeing 737, though overall operating costs eased 10 percent in line with scaled-back services.
The grounding limited KQ’s ability to operate international routes, though one Dreamliner has since returned to service, with the remaining two expected back before year-end.
CEO Allan Kilavuka admitted the airline faced “industry-wide challenges” but remained upbeat, noting strong demand for international travel. He said the airline is focused on restoring full fleet capacity, cutting costs, and completing a capital-raising program to stabilize finances.
Kenya Airways also reaffirmed its strategy to enhance efficiency, shield itself from inflation and fuel volatility, and cement its role in driving Africa’s connectivity and trade.
According to IATA, global passenger demand is expected to rise by 5.8 percent in 2025, although cargo growth will slow to 0.7 percent.
