Kenya Airways Battles Fleet Shortages as Half-Year Losses Climb to KSh 12.1 Billion

Nairobi, Kenya – Kenya Airways (KQ) has slipped back into loss-making territory, posting a KSh 12.1 billion net lossfor the half-year ending June 30, 2025. Chief executive Allan Kilavuka attributes the setback to a sharp reduction in fleet capacity, which cut revenues and slowed the carrier’s recovery momentum.

Fleet Shortages Bite

Kilavuka told reporters that several wide-body and narrow-body aircraft were grounded for maintenance and technical issues, slashing available capacity by nearly 20 percent. The impact was immediate: revenues plunged 19 percent to KSh 75 billion, down from KSh 91 billion in the same period last year.

“The grounding of aircraft directly cost us about KSh 17 billion in revenue,” Kilavuka said.

The airline has since restored one of the grounded aircraft and is accelerating efforts to return others to service. Discussions are also underway to expand the fleet through acquisitions, a critical step if KQ is to defend its regional market share against Ethiopian Airlines, RwandAir, and Gulf carriers that dominate East Africa’s long-haul routes.

Turning to Cost Discipline and Capital Raising

Beyond fleet expansion, Kilavuka outlined a mix of cost optimisation measures and a capital-raising programme to stabilise the balance sheet. The initiative is expected to reduce debt pressure and allow more strategic investment in operations and passenger experience.

Analysts say KQ’s challenge remains balancing short-term liquidity with long-term competitiveness. “The airline cannot afford to lose ground in a region where passenger volumes are steadily rising,” aviation economist Samuel Maina told Streamline Business.

Glimmers of Hope

Despite the KSh 12.1 billion setback, Kilavuka maintains that the fundamentals are improving. He cites the International Air Transport Association’s (IATA) forecast that global passenger traffic will expand by 5.8 percent in 2025, with African routes set to benefit from stronger intra-continental travel.

Importantly, KQ’s 2024 financial performance offers precedent: the airline booked a KSh 5.4 billion profit that year, its first surplus in over a decade, reversing a KSh 22.7 billion loss in 2023. That turnaround was driven by a stronger shilling, debt restructuring, and tighter financial discipline.

Kilavuka believes similar reforms, combined with restored aircraft capacity, could return KQ to profitability.

“We remain committed to delivering long-term value for our shareholders and customers,” he said.

The Bigger Picture

Kenya Airways’ future is closely tied to Kenya’s role as an aviation hub. The carrier not only ferries millions of passengers but also anchors Nairobi’s Jomo Kenyatta International Airport as a gateway to Africa. A prolonged downturn would ripple through tourism, trade, and Kenya’s reputation as a regional connector.

For now, KQ’s task is clear: restore full fleet strength, secure new capital, and keep costs under control. Whether those measures are enough to protect the airline from rising competition and volatile global fuel prices will define its trajectory over the next 18 months.