Kenya Airways posts $132 million 2025 loss as aircraft shortages hit Africa routes

Kenya Airways slipped back into a loss after a brief return to profitability, reporting a $132 million loss as supply chain disruptions limited aircraft availability and reduced capacity on key routes. The setback comes a year after the airline posted its first profit in more than a decade, reflecting how fragile the recovery remains for carriers facing global operational pressures.

The airline reported a loss after tax of Ksh17.16 billion ($132.3 million), compared with a profit of Ksh5.43 billion ($41.9 million) in 2024, according to recently released financial results. Revenue declined to Ksh161.47 billion ($1.24 billion) from Ksh188.5 billion ($1.45 billion) a year earlier, reflecting lower passenger volumes and fewer available seats. The 14 percent revenue drop was linked to a 13 percent fall in passenger numbers after capacity shrank by 18 percent.

Fleet grounding hits capacity, earnings

Operations were affected by the temporary grounding of three Boeing 787-8 Dreamliner jets due to limited engine availability and global supply bottlenecks. Available Seat Kilometres fell to 13,349 million, highlighting the direct impact of reduced fleet availability. Net finance costs also weighed on earnings, reaching Ksh12.32 billion ($95 million).

Acting CEO George Kamal said the airline plans to add Boeing 777 freighters to boost cargo capacity by 250 tons by the end of 2026. CFO Mary Mwenga said the temporary grounding of wide-body aircraft contributed to the weaker performance, while last year’s profit benefited from foreign-exchange gains as the Kenyan shilling strengthened against the dollar.

Chairman Kiprono Kittony said demand for travel remains strong despite operational challenges. He noted that supply constraints—not weak demand—were the main drivers of the loss, adding that the airline continues to play a key role in regional connectivity.

Kenya Airways explores strategic investors

Kenya Airways operates 40 aircraft and flies to 42 destinations worldwide, including 37 in Africa. Through its hub at Jomo Kenyatta International Airport, it connects more than 5 million passengers and transports over 70,000 tons of cargo annually. As the only African member of the SkyTeam Alliance, it links customers to more than 1,060 destinations across 173 countries.

The carrier is also exploring strategic investment options. Kenya’s National Treasury is preparing an international expression of interest, seeking between $1.2 billion and $2 billion to stabilize the airline, in which the government holds a 48.9 percent stake.

Total assets rose slightly to Ksh183.2 billion ($1.41 billion) as of Dec. 31, 2025, from Ksh179.1 billion ($1.38 billion) a year earlier. However, liabilities increased to Ksh315.3 billion ($2.43 billion) from Ksh297.4 billion ($2.3 billion), pushing negative equity to Ksh132.06 billion ($1.02 billion) from Ksh118.25 billion ($911.8 million).

Demand rebounds on long-haul routes

There are signs of improvement in demand. The airline said bookings have climbed in recent weeks, helped partly by disruptions linked to conflict in the Middle East. Seat occupancy, or load factor, has risen from about 70 percent in January to between 90 percent and 99 percent in February and March.

Long-haul routes between Nairobi and Europe, the United States and parts of Asia are driving the increase, according to Kamal, who said stronger international demand is helping fill available seats while the airline works to stabilize operations.