Kenya Airways Posts Ksh17.2Billion Loss for 2025 Financial Year

Kenya Airways has announced a major financial loss in its financial results for the 2025 financial year.

This represents a major decline from the positive financial results announced in 2024.

Financial results from the airline reveal a loss before tax of Ksh 17.2 billion.

This compares to a Ksh 5.4 billion profit earned in 2024. This represents a major decline in the financial performance of the airline.

The airline cited a decline in revenues, limitations in capacity, and operational challenges as reasons for the decline.

Financial results from the airline reveal a decline in revenues.

Total revenues declined by 14 percent to Ksh 161.47 billion in 2025.

This compares to Ksh 188.50 billion earned in 2024.

This represents a decline in passenger demand compared to available capacity.

This reflects a major decline in revenues from the aviation sector.

“The overall performance and operations in the year 2025 were severely impacted primarily by the temporary grounding of three of the wide-body fleet, Boeing 787-8 Dreamliner aircraft. This was mainly due to global supply chain constraints and limited engine availability.”

Operational Disruptions and Revenue Decline

The airline noted that there was a decline in capacity, which was measured in Available Seat Kilometres (ASKs), by 18 percent to 13,349 million in 2025 from 16,227 million in 2024.

However, this was still a contributing factor to a decline in passenger numbers by 13 percent, which further added to the decline in revenue.

“Revenue declined by 14% (Ksh 27 billion) mainly driven by 13% decline in passenger numbers despite a 18% reduction in capacity,” noted the statement.

Operating costs offered a slight respite, declining by 3 percent to Ksh 167 billion, mainly due to reduced operations resulting from the grounding of the Dreamliner aircraft.

However, fleet ownership costs grew by 33 percent, attributed to the remeasurement of leased assets and additional aircraft, such as B738s.

“Operating costs decreased by 3%, driven by reduced operations,” noted the airline, adding that, “fleet ownership costs went up by 33% due to remeasurement of leased assets, as well as additional fleet.”

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Industry and Economic Pressures

Kenya Airways cited industry challenges that still affect the performance of the aviation industry globally.

As mentioned, the industry has shown a steady recovery trend, but the airline cited challenges in the industry, including delayed deliveries, engine availability, and supply chain disruptions.

“The aviation industry continued its steady recovery, underpinned by strong passenger demand. However, the industry also faced notable headwinds, including delays in aircraft deliveries, engine availability challenges, and persistent global supply chain constraints.”

The economic environment was also a factor, especially considering the inflation rates and the situation in the Middle East, which affected the airline’s performance, especially concerning fuel costs and efficiency.

“The situation is also due to volatility in global jet fuel prices and airspace restrictions. This resulted in longer flight times and higher fuel consumption as well as navigation costs.”

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Outlook and Recovery Strategy

Looking ahead, Kenya Airways expressed cautious optimism, citing projections of continued growth in global passenger demand.

The airline referenced industry forecasts indicating a 4.9 percent year-on-year increase in traffic, with cargo expected to grow at 3.1 percent.

“Notwithstanding the headwinds faced by the aviation sector, sustainability is likely to remain a central focus, with accelerating adoption of Sustainable Aviation Fuel (SAF) and emissions-reducing technologies,” the statement said.

The airline also outlined a strategic focus on restoring full operational capacity and strengthening its balance sheet.

Key priorities include completing capital raising initiatives, expanding fleet size, diversifying revenue streams, and reducing financial leverage.

“In the challenging operating environment, Kenya Airways will focus on bringing back the full complement of the aircraft, alongside completing the capital raising,” the airline stated.

Despite the financial setback, the carrier maintained that passenger demand remains resilient.

“Despite economic uncertainties, passengers’ desire to travel remains undiminished,” the statement concluded.

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