Kenya Airways Slips Back Into Losses Amid Fleet Woes
BaseLine Team
26 Aug, 2025
Kenya Airways (KQ) has slid into a net loss of $93 million for the first half of 2025, erasing the fleeting return to profitability it reported last year. The setback was attributed to persistent operational disruptions.
Three Boeing 787 Dreamliners were grounded after delays in engine overhauls—each overhaul costing up to $15 million and taking months to complete. The disruption slashed the airline’s seat capacity by 16%. Only one aircraft has since returned to service, with the other two expected back later this year.
Total income fell 18.6% year-on-year to $569 million, while operating expenses stood at $616 million. This drove the airline into an operating loss of $48 million, compared with a $10 million profit a year earlier. Operating margin dropped to -8.4% from 1.4% in the same period of 2024. Other costs surged to $46 million from just $5 million, pulling profit before tax down to a loss of $93 million, from a $5 million surplus last year.
The carrier closed the half-year with a net margin of -16.3%, a sharp reversal from the 0.6% margin recorded in 2024. It is seeking $500 million to bolster its balance sheet, expand its fleet, and clear maintenance backlogs. Kenya Airways has also launched new routes to London Gatwick and Abidjan via Douala in a bid to lift revenues.
The performance underscores the widening gap with its northern rival, Ethiopian Airlines. Africa’s largest carrier reported record revenues of $7.6 billion in the 2024/25 fiscal year, up 8% from the previous year. Net profit climbed to $1.05 billion as passenger traffic surpassed 19 million.
