Kenya Airways (KQ) has reported on tuesday a pre-tax loss of 17.93 billion shillings ($138.30 million) for the 2025 financial year, marking a sharp reversal from the 5.53 billion shilling profit recorded in 2024. The national carrier’s return to a deficit was primarily driven by severe fleet groundings and global supply chain disruptions that constrained its operational capacity throughout the year.
The group’s total income fell to 161.47 billion shillings, a significant decline from the 188.5 billion shillings generated in the previous period. This revenue drop coincided with an 18% decrease in Available Seat Kilometres (ASKs), as the airline struggled with the temporary grounding of three Boeing 787-8 Dreamliners—representing one-third of its wide-body fleet.
Operating costs remained high at 167 billion shillings, down only 3% despite the reduced flight activity. Management noted that fleet ownership costs actually surged by 33%, totaling 27.2 billion shillings, due to the remeasurement of lease liabilities and the addition of a Boeing 737-800 to the fleet.
After accounting for a tax credit of 764 million shillings, the airline’s net loss for the year stood at 17.13 billion shillings. Looking ahead, the Kenyan government continues to seek a strategic international investor to inject an estimated $1.2 billion to $2 billion into the carrier to stabilize its balance sheet. CEO Allan Kilavuka has stated that the airline aims to have its full fleet back in service by June 2026 to recover lost market share.
