A difficult mix of grounded aircraft, rising costs and global supply chain disruptions has pushed Kenya Airways (KQ) back into the red, with the airline reporting a net loss of Ksh 17.2 billion for the year ended December 2025.
This marks a sharp reversal from the Ksh 5.2 billion profit recorded in 2024, underlining how quickly gains in the aviation sector can be wiped out by external shocks.
The biggest blow came from the temporary grounding of three Boeing 787-8 Dreamliner aircraft, which disrupted long-haul operations and significantly reduced capacity across key routes.
The grounding was linked to a global shortage of aircraft spare parts and engine components, a problem that has continued to affect airlines worldwide.
With fewer planes in the air, the airline’s available seat kilometres dropped by 18 per cent to 13.3 billion. Passenger numbers also fell by 13 per cent, dragging total revenue down by Ksh 27 billion to Ksh 161 billion.
Efforts to cut costs did little to cushion the blow. Operating expenses only declined slightly by 3 per cent to Sh167 billion, leaving a gap that resulted in an operating loss of Ksh 5.6 billion. This eventually widened to the full-year net loss.
Chairman Kiprono Kittony maintained that the downturn was not a reflection of weak demand.
“While our financial performance reflects a challenging year, it is important to recognise that this was driven primarily by global supply chain disruptions and not a lack of demand,” he said.
Aviation industry globally
Acting CEO George Kamal said the airline’s experience mirrors a wider crisis in global aviation, where carriers are grappling with delayed aircraft deliveries, engine shortages and high operating costs.
According to the International Air Transport Association, passenger demand remained strong in 2025 as international travel continued to recover, but profitability has been squeezed by expensive fuel, labour costs and persistent supply chain bottlenecks.
For Kenya Airways, the situation has been made worse by regional challenges, including high operational costs within Africa and infrastructure limitations that make expansion more expensive.
Cargo operations, which had previously supported revenues during the pandemic recovery period, also weakened amid slower global trade and changing tariff regimes.
At the same time, geopolitical tensions have introduced fresh uncertainty. The ongoing conflict involving Israel, the United States and Iran has disrupted key air routes and driven up fuel prices.
Kenya Airways says the crisis has had mixed outcomes. On the positive side, the airline is recording high seat occupancy of about 90 per cent, benefiting from passengers rerouting through Nairobi as they avoid Middle East airspace.
However, the gains are being offset by rising costs. Jet A-1 fuel prices have surged by about 60 per cent, while flight diversions are costing the airline at least Ksh 2.6 million per trip due to longer routes.
Looking ahead, management says restoring grounded aircraft remains the top priority.
“Fleet restoration is seen as the most immediate lever for recovery. Bringing back the grounded Dreamliners is expected to unlock capacity, stabilise schedules and recapture lost revenue. At the same time, management is pushing for stricter cost discipline and cash conservation to navigate ongoing uncertainties,” Kamal said.
The airline is also pursuing fresh capital to strengthen its financial position, improve liquidity and support future growth in an increasingly competitive market.
Even so, the pace of recovery will largely depend on how quickly global supply chains stabilise and whether geopolitical tensions ease in the months ahead.
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