Kenya Airways hit by KSh12bn half-year loss as grounded Dreamliners cut revenue and capacity

Nairobi, Aug 27, 2025 — National carrier Kenya Airways PLC (KQ) has reported a KSh12 billion net loss for the six months ending June 30, 2025, blaming the grounding of three Boeing 787-8 Dreamliners — a third of its wide-body fleet — due to supply-chain disruptions and engine shortages.

Key financials (H1 2025)

• Revenue: KSh75 billion, down 19% year-on-year.

• Passenger numbers: Down 14% compared with H1 2024.

• Available Seat Kilometres (ASKs): 6.7 billion vs 7.99 billion last year.

• Operating result: KSh6.2 billion loss, a sharp reversal from the KSh1.3 billion profit in H1 2024.

• Costs: Operating costs cut by 10%, but fleet-ownership expenses up 29% due to lease remeasurements and a new Boeing 737 acquisition.

Operational challenges

• Three Dreamliners sidelined by engine shortages disrupted long-haul routes.

• One aircraft returned to service in July; the remaining two are expected back by year-end.

• Reduced capacity cut KQ’s ability to serve profitable intercontinental routes, directly impacting yields.

Management’s response

• Cost control: 10% cut in operating expenses, but outweighed by rising lease charges.

• Capital raise: Plans for a strategic capital injection to reduce debt and bolster liquidity.

• Fleet recovery: Priority is restoring Dreamliners to service to rebuild market share.

• Operational efficiency drive: Ongoing initiatives in scheduling, fuel efficiency, and network optimization.

Why it matters

• National symbol at risk: Kenya Airways is a key pillar of Kenya’s connectivity and tourism strategy. Losses threaten long-term viability without urgent restructuring.

• Investor confidence: A sustained recovery hinges on the success of the capital raise and debt management.

• Regional competition: Ethiopian Airlines and RwandAir continue to expand, intensifying pressure on KQ to restore long-haul capacity quickly.

What to watch next

• Timing of Dreamliner returns and their impact on Q3/Q4 performance.

• Details of the capital raise — structure, investors, and government role.

• Possible renegotiation of leases or sale-and-leaseback deals to ease fleet-ownership costs.

• Passenger demand trends as KQ balances pricing with capacity recovery.