Kenya Airways (KQ) has returned to the red after posting a loss of Ksh 12.15 billion after tax for the first half of 2025, a sharp reversal from the Ksh 513 million profit recorded in the same period in 2024.
This represents a net margin of negative 16.3 percent, compared to a modest 0.6 percent profit margin last year.
The airline’s total income for the six months ending June 2025 fell to Ksh 74.5 billion, down from Ksh 91.5 billion in June 2024, reflecting a drop in revenue amid challenging operating conditions.
Total operating costs decreased slightly to Ksh 80.7 billion, down from Ksh 90.2 billion, representing a year-on-year reduction of about Ksh 9.45 billion.
Kenya Airways Posts Ksh 12.15 Billion Loss in H1 2025
Despite this reduction, the airline recorded an operating loss of Ksh 6.24 billion, compared to an operating profit of Ksh 1.3 billion in H1 2024.
This translated to a negative operating margin of 8.4 percent, down from 1.4 percent last year.
Other costs surged to Ksh 5.97 billion, up from Ksh 687 million in 2024, further straining the airline’s finances.
Interest income rose slightly to Ksh 35 million, up from Ksh 23 million recorded last year, but remained too small to offset rising expenses.
Passenger numbers fell by 14% to 2.2 million, while available seat kilometres (ASKs) dropped 16% to 6.72 billion, accompanied by a 19% decline in revenue passenger kilometres (RPKs).
The airline’s total revenue also fell by Ksh 17 billion, reflecting the reduced capacity and weaker demand.
In the first half of 2024, the airline made a profit after tax of Ksh 513 million for January to June, overturning a Ksh 21.7 billion loss in the first half of 2023.
Also Read: Kenya Airways Reduces Fares for Flights to 13 Countries by 20%
In 2023, Kenya Airways’ loss after tax reduced by 41% to Ksh 23 billion from Ksh 38 billion, marking the tenth consecutive year of losses. The airline last posted a profit in 2012.
One of Africa’s three biggest airlines, Kenya Airways, slid into insolvency in 2018 after an expansion drive left it with hundreds of millions of dollars in debt.
The collapse in international travel during the COVID-19 pandemic, combined with a sharp weakening of the Kenyan shilling and higher interest rates, made it more difficult to service that debt.
The airline has been in the red since 2013.
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Kenya Airways Profit Rises 124% to Ksh 5.4 Billion in 2024
Kenya Airways posted a 124 percent increase in profit after tax for the financial year ending December 31, 2024, rising to Ksh 5.4 billion.
This marked a remarkable turnaround from a loss of Ksh 22.6 billion the previous year, reflecting an improvement of Ksh 28 billion. It was the first profit the airline has posted in over a decade.
Total revenue rose by 6 percent to Ksh 188.5 billion, driven by a 4 percent increase in passenger numbers and 25 percent growth in cargo tonnage. Total costs increased by 9 percent, in line with capacity growth.
Operating profit surged 58 percent to Ksh 16.6 billion, reflecting effective cost management, while operating costs increased only 2 percent to Ksh 171.9 billion. Net finance costs decreased by 67 percent to Ksh 11.1 billion.
Profit before tax reached Ksh 5.5 billion, compared to a loss of Ksh 22.8 billion in 2023. Cargo volume rose by 25 percent to 70,776 tonnes, while passenger numbers grew by 4 percent to 5.23 million.
Operating margin improved from 5.9 percent to 8.8 percent, and the net margin rose from -12.7 percent to 2.9 percent. Market capacity, measured in Available Seat Kilometers (ASKs), increased 10 percent to 16.227 billion, up from 14.804 billion last year.
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