Kenya Airways has issued a profit alert, warning that its 2025 earnings will drop by at least 25% compared to 2024. The airline attributes this decline to engines availability and spare parts shortages.
Currently, Kenya Airways says three Boeing 787-8 planes are grounded, out of nine Dreamliners, severely slowing down its long haul flights and lowering ticket numbers. The airline’s Board of Directors remains optimistic that the tides will turn for the airline as it goes ahead to execute its recovery plan.
KENYA AIRWAYS SHARE PRICE PERFORMANCE:
Profit warnings like the one issued by Kenya Airways serve as a heads-up for investors, preparing them mentally for the potential impact and allowing the market to adjust to the news.
Investment watchers disclose that in this way, the negative news is priced in early, reducing the shock when the final financial reports are released.
Kenya Airways’ is still banking its turnaround strategy on Project Kifaru, which pushed the airline’s net earnings to KSh 5.4 billion in 2024, the first profit in over a decade. However, its current challenges highlight the ongoing hurdles in the global aviation industry.
Aircraft manufacturers like Boeing and Airbus are struggling to meet demand due to raw material shortages, logistical challenges and quality setbacks. The result is fewer new planes and consequently short supply of spare parts.
As airlines hang onto older planes longer, maintenance demands surge, consuming up more spare parts. The global fleet average age is 14.8 years and so any fleet that is older than this is burning through parts faster.
Kenya Airways fleet
Kenya Airways fleet, which is relatively modern, has an average age of 14.29 years. The national carrier operates 35 aircraft including 787-8 Dreamliner, Boeing 737-800, Boeing 737-700 and Embraer E-190.
KQ has a fleet of 9 Boeing 787-8 Dreamliners, which are the backbone of its long-haul operations, flying to destinations such as London, Paris, Bangkok and New York.
The Dreamliner aircraft is the main asset in KQ’s premium routes, operating daily flights to New York, Lagos, Cape Town, Johannesburg, Bangkok, Amsterdam, Paris and London, connecting Africa, to Europe, Asia and North America.
Kenya Airways’ most profitable route is London, the Nairobi-Heathrow and Nairobi-Gatwick routes. The London market contributes over 10% of KQ’s total turnover, with Heathrow being almost full year round.
The Nairobi route provides London Gatwick with onward connections to more than 40 destinations across Africa such as Johannesburg, the white sands of Seychelles and Zanzibar as well as mountain treks on Mt Kilimanjaro in Tanzania, attracting a large volume of business and travellers looking for leisure spots.
KQ has set an ambition plan or Project Kifaru, to recapitalize through a strategic investment, grow its fleet to 53 aircraft by 2029, expand its capacity to ferry cargo and seek for partnerships to boost connectivity. The National Carrier is also eyeing financial backing from the Kenya Government.
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