KQ slides back to the red with Sh17.2b net loss

From left: Ag. Group MD & CEO at Kenya Airways, Capt. George Kamal, newly appointed Chairman Mr Kiprono Kittony and the Chief Finance Officer at Kenya Airways, Ms Mary Mwenga during the FY2025 results announcement. [Wilberforce Okwiri, Standard]

Kenya Airways has reported a net loss of Sh17.16 billion for the period to December 2025, sliding back to loss-making after the Sh5.4 billion profit it announced in 2024, which was a break from a decade of loss-making. 

The national carrier is also staring at an uncertain 2026 following the crisis in the Middle East that has resulted in  oil prices surging to record highs and expected to result in higher operational costs for airlines.

KQ yesterday attributed last year’s loss to "unprecedented operational constraints" that the aviation industry faced.

These included shortage of aircraft parts that resulted in KQ grounding some of its planes, leading to revenue losses. 

While the carrier said the year was characterised by strong fundamentals, including strong travel demand, this could however not be met owing to declining capacity. 

Its revenues dropped 14 per cent to Sh161.47 billion in 2025 from Sh188.5 billion in 2024, driven by a 13 per cent drop in passenger numbers following an 18 per cent reduction in capacity.

“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.

"The appetite for travel remains strong, and the strategic relevance of Kenya Airways has never been more evident,” said KQ chairman Kiprono Kittony. 

Prior to the Sh5.4 billion net profit reported in 2024, the carrier  reported losses since 2013, with the worst being the Sh38.3 billion reported in 2022.

Last year, the global parts shortage forced KQ to ground three of its 787-8 Dreamliners, a significant hit for the airline, whose fleet comprises nine 787-8 Dreamliners. This resulted in reduced capacity across key routes.

During the year, KQ’s capacity, measured in Available Seat Kilometres (ASKs), declined by 18 per cent to 13.4 billion, underscoring the direct impact of fleet constraints on performance, it said.

The airline’s operating costs decreased by three per cent to Sh167 billion, which was on account of reduced operational activity and carrying costs of the grounded fleet.

Kittony, who was in early March appointed to chair the KQ board, added that the board would continue to support management, which is singularly focused on stabilising the airline in the short term while building long-term resilience and sustainability, emphasising the carrier's importance as a strategic national asset.

Acting Group Managing Director and Chief Executive Officer, George Kamal, said the carrier is cautiously optimistic about 2026, counting on returning grounded fleet to service but also policy support.

It, however, faces the hurdle of high fuel prices as the US-Israel war on Iran persists, which has also resulted in airspace closures that lead to longer routings, and lost revenue on certain routes. 

“Tensions in the Middle East pose a potential risk to the sector through fuel price volatility and airspace restrictions, which could increase operating costs due to longer routes and higher fuel consumption,” he said

Kamal noted that in 2025, KQ operated in a  complex macroeconomic landscape marked by elevated input costs, particularly fuel and labour and ongoing geopolitical uncertainty. 

“Within Africa, structural challenges, including infrastructure limitations and elevated operating costs, continue to shape the operating environment,” he said, while noting there are still opportunities in connecting Africa. 

“Despite this, demand for air travel across the continent remains strong, supporting long-term growth prospects. Cargo performance softened amid slower global trade and shifting tariff regimes, while regulatory costs continued to exert pressure across the sector.”

Kenya Airways is increasingly looking at growing its cargo-carrying capacity. It has recently added a B747 freighter to its fleet and is eyeing two additional 777 freighters (each with 100 tonne capacity) by November 2026.

The airline is targeting to capture about 40 per cent Kenyan cargo market share and 15 per cent African share.