Kenya Airways posts half-year loss amid fleet groundings

Kenya Airways PLC has reported its financial results for the six months ending June 30, 2025, a period defined by considerable operational and financial turbulence. Central to the difficulties was the temporary grounding of three Boeing 787-8 Dreamliner aircraft, amounting to a third of the airline’s wide-body fleet. The grounding, caused by global supply chain disruptions and limited engine availability, significantly constrained capacity and revenue generation during the first half of the year.

The airline’s total revenue stood at KES75 billion, a 19% decline from the KES91 billion posted in the same period of 2024. Passenger numbers fell by 14 per cent, while available seat capacity was reduced by 16%, with overall offered capacity dropping from 7,991 million Available Seat Kilometres (ASKs) to 6,715 million. These declines translated into an operating loss of KES6.2 billion, reversing the KES1.3 billion operating profit achieved in the prior period. The net result was a loss of KES12 billion compared with a profit of KES513 million in the first half of 2024.

Efforts to contain the impact of these headwinds included disciplined cost management and scaled-down operations, which lowered operating costs by 10%. However, fleet ownership costs rose by 29%, a reflection of the remeasurement of leased assets as well as the acquisition of a new Boeing 737 aircraft.

Despite the setbacks, there were some encouraging developments. One of the grounded Dreamliner aircraft resumed operations in July 2025, with the other two expected to return to service before the end of the year. Looking forward, Kenya Airways remains focused on implementing its recovery plan, which centres on restoring grounded aircraft to service, expanding capacity, enhancing operational efficiency, and undertaking a strategic capital raise. The airline views these measures as essential to reduce debt, strengthen liquidity, and support long-term sustainable growth.

Although the financial results for the first half of 2025 illustrate the scale of the challenges faced, the carrier remains committed to stabilising its operations and positioning itself for recovery in a demanding aviation market. (US$1.00 = KES129.14 at time of publication).