Financial reversal: Kenya airways posts significant loss after brief profitability

Nwali Chidozie

Kenya Airways (KQ) has reported a significant reversal in its financial performance, posting a pretax loss of KSh 12.17 billion kenya shillings ($94.34 million) for the first half of this year.

The announcement on Tuesday marks a stark downturn from the KSh 634 million ($4.91 million) profit the airline recorded in the same period a year ago, raising questions about the sustainability of its recent recovery efforts.

KQ’s dramatic shift comes after the airline had celebrated its first half-year profit in over a decade in 2024, a milestone that signaled a promising turnaround from years of deep financial struggle.

The previous year’s positive results were attributed to a combination of operational improvements, a favorable foreign exchange environment, and a surge in passenger numbers.

Reversal of Fortune

The primary driver behind the swing from profit to loss appears to be a resurgence of the same challenges that have historically plagued the African top leading carrier:

foreign exchange volatility and a heavy debt load. While the company’s operational performance may have improved, the external economic environment has once again overshadowed these gains.

In 2024, the Kenyan shilling had shown strength, leading to foreign exchange gains that significantly bolstered KQ’s balance sheet.

This year, however, the trend has reversed. A weakening shilling increases the cost of servicing the airline’s foreign-denominated debt and other liabilities, effectively wiping out any operational profits.

Breaking Down the Numbers

A comparison of the half-year performance highlights the severity of the financial deterioration:

• Pretax Loss: KSh 12.17 billion ($94.34 million) in 2025 vs. KSh 634 million ($4.91 million) profit in 2024.
• Decline: A complete reversal of fortune, moving from a profit to a substantial loss.

KQ’s previous half-year profit in 2024 was seen as a validation of its “Project Kifaru” turnaround strategy, which focused on operational efficiency, cost management, and improving the customer experience.

However, the latest figures suggest that even a successful internal strategy may not be enough to counter macroeconomic headwinds.

Kenya Airways’ struggles are not unique in the global aviation sector. The industry continues to face significant challenges, including a shortage of aircraft, engines, and spare parts.