Kenya Airways Struggles for Altitude

TWN Business Desk

Kenya Airways has blamed operational and financial challenges, including the temporary grounding of three Boeing 787-8 Dreamliner aircraft, which represent 33 per cent  of the airline’s wide-body fleet, due to global supply chain disruptions and engine availability constraints, for the 19 per cent decline in its revenue by Ksh 17 billion for the first six months of 2025. This reflected a 14 per cent drop in passenger numbers and a 16 per cent reduction in available seat capacity.

The airline says it offered to the market a capacity of 6,715 million Available Seat Kilometres (ASKs), down from 7,991 offered in the prior period. Fleet ownership costs increased by 29 per cent following asset remeasurement of leased assets and the addition of one new Boeing 737 aircraft.

 Operating costs decreased by 10 per cent due to scaled-down operations. The airline posted an operating loss of Kshs6.2 billion compared to an operating profit of Ksh 1.3 billion in the prior period and a loss of Ksh 12 billion compared to a profit of Ksh 513 million reported in the prior period. Total revenue closed at Ksh 75 billion, compared to Ksh 91 billion in the same period last year.

Despite these challenges, Kenya Airways demonstrated resilience through disciplined cost management, operational efficiencies, and ongoing measures to strengthen its long-term position. At the same time, one of the grounded Boeing 787-8 Dreamliner aircraft resumed service in July 2025, with the remaining two expected to return to service later in the year.

Kenya Airways Group Managing Director and Chief Executive Officer  Allan Kilavuka said the first half of 2025 was defined by industry-wide challenges that directly impacted our performance, particularly the grounding of three of our aircraft.  “While the financial results reflect these headwinds, we have taken decisive actions to stabilize operations and protect the long-term resilience of Kenya Airways.”

Expressing optimism on the back of these challenges, Kilavuka observed: “Even in the face of these challenges, passenger demand for international routes remains robust, underscoring the strength of our brand and the critical role Kenya Airways plays in connecting Africa to the world. We are encouraged by the resumption of one of our grounded aircraft, and we look forward to bringing the remaining two back into service, later in the year.”

Kilavuka added: “Our focus remains clear: restoring full fleet capacity, advancing cost optimization, and completing our capital raising program to strengthen our balance sheet. These measures will ensure we emerge stronger, leaner, and better positioned to deliver long-term value for our shareholders, customers, and partners.”

Industry and Outlook

The aviation industry continues to recover from the effects of the pandemic and structural pressures in global supply chains. International Air Transport Association (IATA) projections indicate global passenger traffic will grow by 5.8 per cent in 2025, while cargo demand growth is expected to slow to 0.7 per cent.

Kenya Airways says it remains committed to executing its recovery plan, including restoring grounded aircraft and expanding available capacity, enhancing operational efficiency to mitigate cost pressures from inflation and fuel volatility, and completing a strategic capital raise to reduce leverage, increase liquidity, and drive sustainable growth.

Kilavuka stated that Kenya Airways was focused on serving as a key enabler of connectivity and trade in Africa with an unwavering commitment to passengers and partners.  “Our recovery plan gives us confidence in our ability to navigate near-term challenges while building a more competitive and sustainable airline.”