Kenya Airways (KQ) has reported a net loss after tax of Kes 12.15 billion for the first half of 2025, marking a dramatic reversal from the Kes 513 million net profit recorded during the same period in 2024.
According to the airline’s consolidated income statement:
- Total income fell from Kes 91.49 billion in H1 2024 to Kes 74.5 billion in H1 2025
- Operating loss stood at Kes 6.24 billion, compared to a Kes 1.3 billion operating profit last year
- Operating margin dropped to -8.4%, down from 1.4%
- Loss before tax reached Kes 12.17 billion, with a taxation benefit of Kes 19 million
- Net margin declined from 0.6% to -16.3%
Fleet Downtime Blamed for Revenue Decline
The airline attributed the downturn to reduced passenger numbers and revenue, largely due to the grounding of three Boeing 787-8 Dreamliners for maintenance.
“One of the planes resumed service in July, and we are working to have the full fleet operational by next year,” said CEO Allan Kilavuka during an investor briefing.
“So, unfortunately for us, most of our aircraft in 2025 have come to a place where they need to be overhauled, or the engines need to be overhauled. And I’m talking about our wide-body fleet. Six of our nine aircraft are due for overhaul. We’ve done some of them, but some we have not been able to do because of the congestion in the shops across the world, and also because of the heavy costs that need to be paid upfront. For example, to overhaul one particular engine costs about 15M dollars, which is about 2B Kenya shillings. And over a period of time, we will need to be overhauling 12 engines. So you can imagine what kind of capital outlay we are looking at.”
Capital Raise Planned to Support Expansion
To stabilise operations and fund fleet expansion, Kenya Airways plans to raise at least $500 million in new capital by the first quarter of 2026.
“We have said the minimum that we are gunning for is about half a billion dollars, which we believe is the minimum. That will address the fleet expansions that we are looking for,” Kilavuka added.
The airline is currently identifying funding sources and will seek shareholder approval in 2026.
2024 Profit Was First in Over a Decade
Kenya Airways posted a full-year pretax profit of Kes 5.53 billion in 2024, its first in over ten years. That performance was driven by foreign exchange gains of Kes 10.55 billion, as the Kenyan shilling strengthened by over 20% against the dollar.
In contrast, 2023 saw a forex loss of Kes 15.04 billion and a pretax loss of Kes 22.86 billion.
Government Support Remains Crucial
Since its 2018 insolvency, Kenya Airways has relied heavily on state financial support. In January 2025, the government paid off a $150 million loan the airline had received from local commercial banks.
As one of Africa’s largest carriers, Kenya Airways continues to navigate a challenging aviation landscape. Its ability to restore fleet capacity and secure new capital will be pivotal in regaining profitability and sustaining long-term growth.
