Kenya Airways (KQ) returned to a net loss in the financial year ended 2025, reversing a profit posted a year earlier, as global aviation disruptions, high costs, and weak regional margins outweighed operational improvements and gains in customer service.
In an official announcement on March 24, 2026, the national carrier posted a net loss after tax of Ksh17.1 billion in FY2025, compared to a net profit of Ksh5.4 billion in 2024.
Total income dropped to Ksh161.5 billion from Ksh188.5 billion due to lower passenger numbers, reduced cargo volumes, and a slowdown in overall flight activity.
Kenya Airways Books Heavy Losses
The airline said the performance was influenced by a tough operating environment characterized by aircraft availability issues, extended engine overhauls, supply chain disruptions, and increasing costs.
These pressures were especially severe for African carriers, which still operate on the slimmest profit margins worldwide.
According to industry forecasts presented by Kenya Airways, Africa’s airlines are expected to earn just about $1.30 (Ksh167.7) in net profit per passenger in 2026, compared with nearly $10 (Ksh1,290) in Europe and North America and close to $29(Ksh3,741) in the Middle East.
Management noted that no airline in the region can remain profitable without strict financial discipline under such conditions.
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Operational data indicate that Kenya Airways carried fewer passengers in 2025 than the previous year.
Revenue passenger kilometers decreased by 18 percent, passenger numbers dropped to 4.6 million from 5.2 million, and cargo volumes declined by eight percent.
Turnover decreased by 14 percent year over year.
KQ’S Gains
Despite the downturn in demand and revenue, the airline posted several operational gains.
On-time performance improved, while the Net Promoter Score, a key measure of customer satisfaction, rose to 28 in 2025 from negative deviations three years earlier.
KQ cited staff service, punctuality, cleanliness, and cabin comfort as factors contributing to the improvement.
The carrier also received multiple regional and global awards in 2025, including Africa’s Leading Airline and Africa’s Leading Business Class Airline at the World Travel Awards.
Its Pride Lounge at Jomo Kenyatta International Airport received recognition from TripAdvisor, while its catering and fleet collaboration initiatives earned international industry accolades.
Fleet operations stabilized during the year, with three grounded aircraft returning to service and one additional Boeing 737-800 added, bringing the total fleet to 41 aircraft.
Maintenance, repair, and overhaul operations expanded, with the airline completing 16 heavy maintenance checks, conducting 38,000 in-house component repairs, and securing new approvals and partnerships across Africa.
However, high costs continued to put pressure on the bottom line.
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Engine overhaul expenses have surged, with a single GEnx engine overhaul costing about $15 million (Ksh1.94 billion), while turnaround times have increased to as much as 120 days, up from approximately 60 days previously.
KQ said 14 per cent of the global aircraft fleet remains parked due to similar constraints, tightening capacity and raising costs across the sector.
Operating costs fell slightly to Ksh167.1 billion from Ksh171.9 billion, but this was not enough to offset the sharp drop in revenue.
The airline reported an operating loss of Ksh5.6 billion, compared to an operating profit of Ksh16.6 billion the year before.
Kenya Airways remained cash-positive at an operational level, generating Ksh18.1 billion in net operating cash flows, but financing and investing activities continued to drain liquidity.
The airline ended the year with cash and cash equivalents of Ksh5.3 billion.
The balance sheet remains strained, with negative equity of Ksh132.1 billion and total liabilities of Ksh315.3 billion, underscoring the legacy impact of years of losses and restructuring.
Looking ahead, the airline stated that its recovery plan will concentrate on raising capital to tackle aircraft and engine limitations, reducing costs, ensuring operational stability, and expanding cargo capacity.
Management maintained that while operational performance has improved, restoring sustainable profitability will depend on easing global supply constraints and improving the economics of African aviation.
