Kenya Airways swung back into the red in the first half of 2025. The airline has recorded a net loss of Ksh 12.15 billion after tax, a stark contrast to the modest Ksh 513 million profit it posted during the same period in 2024. The carrier also posted an operating loss of Ksh 6.2 billion, compared to an operating profit of Ksh 1.3 billion a year earlier.
The airline’s total income fell to Ksh 74.5 billion from Ksh 91.5 billion in 2024. Passenger numbers declined by 14 per cent to 2.2 million, while available seat kilometres dropped 16 per cent to Ksh 6.72 billion. The dip was linked to three Boeing 787-8 Dreamliners being grounded for maintenance, which reduced both capacity and efficiency.
Chief Executive Officer Allan Kilavuka said one Dreamliner returned to service in July, and the rest are expected to be operational in 2026. To strengthen its position, Kenya Airways is planning to raise at least Ksh 64.5 billion in new capital and will seek shareholder approval for the funding plan by the first quarter of next year.
The airline’s troubles come only months after it reported its first full-year profit in over a decade in 2024, when it earned Ksh 5.53 billion in pretax profit, helped by foreign exchange gains from a stronger shilling.
Kenya Airways has a history of financial challenges, including a near-collapse in 2018 after an overambitious expansion plan left it heavily in debt. Government intervention has often been necessary to keep it afloat, with a state-backed loan of about Ksh 19 billion repaid earlier this year.
To recover, the airline is restoring its grounded fleet in phases. One Dreamliner resumed service in July, the second is expected back by September, and the third by December 2025.
Kenya Airways is also leasing three narrow-body aircraft later this year to boost domestic and regional routes as well as cargo operations. In addition, it has regained its European safety certification, allowing it to carry out maintenance services for other airlines on the continent, opening up new revenue opportunities.
The first half of 2025 has been a difficult period for Kenya Airways, but management is betting on fleet restoration, new capital raising, leasing strategies and maintenance expansion to put the airline back on a growth path.
> Entrepreneur Narrates Harrowing Experience With Shelter Afrique
Leave a comment