Kenya Airways(KQ) has reported a KSh 12.15 billion half-year net loss, a reverse from a KSh 513 Million net profit at the end of the first half of 2024. This is a dramatic reversal of fortunes, since kQ had made a full year net profit of KSh 5.4 billion, up from a net loss of KSh 22.7 billion in 2024.
In its half-year earnings report, the airline’s revenues were among the worst hit, falling 19% to KSh 74.5 billion. The airline made a pre-tax loss of KSh 12.17 billion from pre-tax profit of KSh634 million in June 2024.
KQ closed its trading on Tuesday, 26th August 2025 at KSh 4.99, recording a 4.8% gain over the previous closing price of KSh 4.76 as investors awaited the airline’s earnings report. The National Carrier began the year with a share price of KSh3.83 with the counter gaining 30.3% since then, placing KQ stock as 30th position in terms of year-to-date performance.
KQ’s balance sheet size grew marginally by 0.7% from KSh 179.10 billion in June 2024 to KSh 180.39 billion at the end of June 2025. Total liabilities side of the balance sheet grew to KSh 309.95 billion in June this year from KSh 297.36 billion in June 2025.
> Kenya Airways Flies Bank Into Turbulent Territory
According to Investment analysts, this financial setback in half-year 2025 has been due mainly due to grounding of three 787-800 Dreamliners, which significantly affected the airline’s capacity and operational efficiency.
These planes, which make up a third of KQ’s wide body fleet have been grounded for months now, due to shortage of spare parts and engine problems. “KQ has also suffered a 14% decline in passenger numbers over the first half of 2025 from 2.6 million in H1 2024, cutting the available seat kilometres by 16% to 6.72 billion,” said CFA Dedan Maina.
Directors at KQ point at challenges in expanding the airline’s capacity, disclosing that 33% of its big aircrafts remained grounded for months due to lack of spare parts. At an investor briefing, KQ Managing Director and CEO Allan Kilavuka said while the airline planned to add four narrow bodies to its aircraft count, it only managed to add one to its fleet, a Boeing 737-800. This is as a severe shortage of aircrafts hits the global market.
Passenger numbers dropped 14%, cargo 8% while operating also declined. Costs eased 10% but Equity worsened to negative KSh 129.6 billion from negative KSh 118.25 billion, highlighting KQ huge recapitalization requirements. While plans to get a strategic partner on board delays and its balance sheet bleeding, KQ is reported to have approached banks in an ambitious capital-raising venture. KQ is looking at a recapitalization of up to US$ 500 Million from a strategic partner.
KQ’s subdued financial performance is seen against the background of challenges facing the global aviation industry. These include lack of aircrafts, both new or leased as well as engines. Many carriers are also experiencing shortage of spare parts. This global scenario appears to have impacted on KQ’s recovery and turnaround pace. This is in addition to the lack of sufficient capital to repair KQ’s debt-laden balance sheet.
KQ’s ambitious capital restructuring plan aims to ease its financial costs and increase cash needed to ensure the airline runs smoothly. The airline is seeking some KSh 64.5 billion in additional capital to strengthen its financial position and support fleet expansion.
> Real Estate Developer Narrates Harrowing Experience With Shelter Afrique
Leave a comment