Kenya Airways reported a pre-tax loss of 17.93 billion shillings (US$138 million) for 2025, reversing a profit recorded a year earlier, as lower revenue and operational disruptions weighed on performance.
The result marks a setback for one of Africa’s leading carriers, which had posted its first pre-tax profit in more than a decade in 2024.
The airline said total revenue fell 14 percent to 161.47 billion shillings, reflecting an 18 percent reduction in capacity during the year.
Acting chief executive George Kamal said the company is seeking to improve performance by expanding operations, including deploying an additional Boeing 777-300 aircraft on its London Heathrow route from July.
The carrier is also exploring plans to add Boeing 777 freighters to its fleet, aiming to increase cargo capacity by about 250 tonnes by the end of 2026.
Chief financial officer Mary Mwenga said the weaker financial results were partly due to operational challenges, including the temporary grounding of three Boeing 787-8 Dreamliner aircraft.
The grounded jets, affected by global supply chain constraints, disrupted long-haul operations and contributed to reduced capacity and revenue.
Analysts say such disruptions have been a recurring issue for airlines globally, as manufacturers and maintenance providers continue to face bottlenecks in parts and servicing.
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Kenya Airways’ 2024 profit had been supported in part by foreign exchange gains, as the Kenyan shilling strengthened by more than 20 percent against the U.S. dollar that year, boosting financial performance.
However, the absence of similar currency gains in 2025, combined with operational setbacks, contributed to the airline’s return to losses.
Despite the weak annual results, the airline pointed to improving demand trends in recent months.
Earlier this week, Kenya Airways said passenger demand had surged due to disruptions in global aviation linked to the Middle East conflict.
Rising geopolitical tensions have prompted several international carriers to reroute flights away from affected airspace, creating opportunities for airlines outside the region.
Kamal said Kenya Airways had capitalised on the shift by redirecting passengers through its Nairobi hub.
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“We took advantage of the current situation and mainly rerouted a lot of customers from Europe. Instead of rerouting through the Gulf, they are now coming through Kenya,” he said.
The airline reported that demand from Europe, the United States and Asia has increased significantly, with higher load factors supporting recent performance.
Industry observers note that while the demand surge provides a short-term boost, sustaining profitability will depend on the airline’s ability to manage costs, maintain fleet availability and execute its expansion strategy effectively.
Kenya Airways has undergone restructuring efforts in recent years aimed at restoring financial stability after years of losses, including government support and operational reforms.
The latest results highlight the fragility of that recovery, particularly in a sector highly exposed to external shocks such as supply chain disruptions, currency volatility and geopolitical risks.
Looking ahead, the planned fleet additions and increased cargo capacity are expected to support revenue growth, especially as global trade and travel patterns continue to evolve.
However, analysts caution that challenges remain, including rising fuel costs and uncertainty in global aviation markets.
For now, Kenya Airways faces the task of rebuilding momentum after its return to losses, even as shifting global travel dynamics offer new opportunities for growth.
