Kenya Airways has announced a significant dip in its financial performance for the first half of 2025, with the airline citing industry-wide challenges and the temporary grounding of part of its fleet as the primary reasons for the downturn. The national carrier, however, maintains that its recovery strategy remains firmly on track, with measures already underway to restore fleet capacity, optimize costs, and secure long-term stability.
According to the financial results released for the six months ending June 30, 2025, Kenya Airways reported revenue of KSh 75 billion, representing a 19% decline compared to KSh 91 billion recorded in the same period last year. The airline also experienced a drop in passenger numbers, which fell by 14%, while available seat capacity decreased by 16%. As a result, the carrier recorded an operating loss of KSh 6.2 billion, a sharp reversal from the KSh 1.3 billion operating profit achieved during the same period in 2024.
The airline attributed the weaker performance largely to the grounding of three of its Boeing 787-8 Dreamliner aircraft. These wide-body planes account for a third of the airline’s long-haul fleet, and their absence from operations had a direct impact on capacity and earnings. Despite these setbacks, Kenya Airways Managing Director and CEO Allan Kilavuka emphasized that the airline’s recovery efforts are progressing as planned. He reassured stakeholders that management had taken decisive actions to stabilize operations and mitigate the impact of the challenges.
“The first half of 2025 was defined by industry-wide challenges that directly affected 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,” Kilavuka said. He further noted that one of the grounded Dreamliners had already returned to service in July, with the remaining two expected to be operational before the end of the year.
Kilavuka added that passenger demand on international routes continues to be strong and will remain a critical driver of the airline’s recovery. He outlined Kenya Airways’ main priorities as restoring full fleet capacity, advancing cost optimization programs, and completing a capital raising initiative to strengthen the balance sheet. These strategies, he said, will position the airline to emerge leaner, more efficient, and more competitive in the long run.
Industry experts point out that Kenya Airways’ performance is consistent with broader global aviation trends. The International Air Transport Association (IATA) has projected that passenger traffic will grow by 5.8% globally in 2025, a positive sign for airlines like Kenya Airways that rely heavily on international passenger volumes. However, cargo demand is expected to grow by only 0.7%, reflecting slowing global trade and economic uncertainties that continue to affect the aviation sector.
Despite the short-term losses, Kilavuka remains optimistic, stressing that Kenya Airways’ recovery is not only feasible but also sustainable. He reiterated that the airline’s focus is on strengthening its operations, ensuring reliability for passengers, and building resilience against future shocks. “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,” he said.
As Kenya Airways looks ahead to the second half of 2025, the airline is banking on the timely return of its grounded fleet, continued recovery in passenger demand, and successful implementation of its restructuring plans to drive improved financial results. The company’s management remains confident that its strategies will enable it to navigate the current turbulence and reposition itself for sustainable growth in the years ahead.
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