Kenya Airways has reported a net loss of KSh17.1 billion for the year ended 31 December 2025, reversing a KSh5.4 billion profit recorded the previous year as revenues dropped sharply due to fleet disruptions.
The airline’s revenue fell by KSh27 billion to KSh161.4 billion, weighed down by reduced passenger capacity. Operating costs declined by a smaller margin of KSh4.79 billion to KSh167 billion, resulting in an operating loss of KSh5.6 billion.
The performance marks a return to losses after a brief recovery, highlighting continued volatility in the aviation sector despite improving global travel demand.
Management said the downturn was largely driven by operational challenges linked to aircraft availability, which significantly limited revenue generation across key international routes.
Fleet grounding disrupts operations
The airline attributed the decline to the grounding of part of its wide-body fleet, particularly three Boeing 787-8 Dreamliner aircraft.
According to the carrier, global supply chain constraints and limited engine availability led to extended maintenance timelines, reducing fleet reliability throughout the year.
At least three Dreamliner aircraft were unavailable for service at any given time in 2025, cutting long-haul capacity by about 20%. This forced the airline to scale down some routes and adjust flight frequencies.
Chief Financial Officer Mary Mwenga said the grounded aircraft significantly impacted earnings.
She noted that wide-body planes are the primary revenue drivers for international airlines, making their absence particularly costly.
Balance sheet pressure deepens
The airline’s financial position weakened further, with its negative equity position widening to KSh132 billion from KSh118.2 billion in the previous year.
Despite the losses, the airline continued trading on the Nairobi Securities Exchange at KSh5.2 per share, giving it a market valuation of approximately KSh30.2 billion.
The government is still seeking a strategic investor as part of ongoing restructuring efforts aimed at stabilising the airline’s finances and improving long-term sustainability.
Cargo strategy offers recovery path
Cargo operations remain a key focus for recovery, even as volumes declined to 64,780 tonnes from 70,776 tonnes recorded the previous year due to weaker global demand.
Acting Chief Executive Officer George Kamal said the airline is expanding its cargo capacity to offset passenger revenue losses.
The addition of a Boeing 747 freighter and partnerships with other carriers have increased cargo capacity from 70 tonnes to 180 tonnes per day. The airline aims to scale this up to 250 tonnes daily by mid-2026.
Management expects cargo and maintenance operations to contribute up to 40% of total revenues going forward.
Optimism amid restructuring efforts
Chairman Kiprono Kittony expressed optimism about the airline’s recovery prospects despite current challenges.
He said the airline’s immediate priorities include restoring fleet availability, improving operational reliability and maintaining strict cost controls.
The carrier is also continuing discussions with potential investors as part of a long-term restructuring plan aimed at strengthening its balance sheet.
Kenya Airways said it is working closely with manufacturers and maintenance providers to ensure timely access to spare parts and reduce future disruptions.
The airline’s latest results underline the ongoing risks facing the aviation industry, where supply chain challenges continue to affect operations even as passenger demand gradually recovers.
