Kenya Airways PLC has reported a net loss of KSh 17.2 Bn for the full year ended 31 December 2025, erasing the KSh 5.4 Billion profit that had ended a decade-long streak of losses just twelve months earlier.
- •Total income fell 14.3% to KSh 161.5 Billion from KSh 188.5 Billion after the temporary grounding of three of the airline's nine Boeing 787-8 Dreamliners slashed capacity by 18% and passenger numbers by 12.9% to 4.55 million.
- •The result arrives at a moment when the airline's ownership, leadership, and strategic direction are all simultaneously in flux.
- •The Dreamliners, powered by GE Aerospace GEnx-1B engines, were grounded from late 2024 as global supply chain constraints stretched engine overhaul times from 60 days to between 90 and 120 days, a problem shared by British Airways, Air New Zealand, and Vietnam Airlines.
The damage was heavily concentrated in the first half, where KQ recorded a pre-tax loss of 12.2 Billion on revenue of just 74.5 Billion. The second half was materially better as restored Dreamliners fed capacity back into the network, with the full-year figures implying a sharply reduced H2 loss, but not enough to salvage the year.
Operating costs declined only 2.8% to KSh 167.1 Bn, producing an operating loss of KSh 5.6 Bn versus the prior year's KSh 16.6 Bn profit. Fleet ownership costs rose 33% on lease remeasurements and the addition of a Boeing 737-800, while other operating costs surged 59% as the foreign exchange gains that had flattered the 2024 result evaporated.
The shilling appreciated more than 20% against the dollar in 2024, generating windfalls that did not recur, making the prior year's profit look increasingly like a currency-driven outlier rather than a structural turnaround. Finance costs climbed 11.1% to KSh 12.4 Bn, pushing the basic loss per share to KSh 2.94 versus earnings of KSh 0.95 a year earlier.
The balance sheet remains deeply impaired, with negative equity widening to KSh 132.1 Bn from KSh 118.3 Bn and total liabilities rising 6.0% to KSh 315.3 Bn. KQ has not held positive equity since 2017 and has recorded only one profitable year in the past 13, making the 2024 result an anomaly rather than a turning point. Operating cash flow of KSh 18.1 Bn, up 2.0%, was the lone bright spot, demonstrating that the airline can still generate cash from operations even when the income statement is deeply in the red.
Systemic global supply chain disruptions have pushed the cost of a single GEnx engine overhaul to KSh 1.9 billion ($15 million), with shop turnaround times nearly doubling to 120 days. With 14% of the global fleet currently parked due to parts shortages, KQ’s fleet availability challenges are reflective of a broader industry crisis rather than isolated internal failures. These rising costs contributed to an operating loss of KSh 5.6 billion for the period.
KQ's C-Suite, Boardroom Shifts
The results were released against a backdrop of sweeping governance change tied directly to what may be the most consequential development in KQ's recent history: the search for a strategic investor. CEO Allan Kilavuka departed in December 2025 after six years, with Captain George Kamal stepping in as acting CEO. Chairman Michael Joseph retired and was replaced in March 2026 by Kiprono Kittony, with economist David Ndii among three new directors joining the board.
The carrier's management initially targeted $500 Mn in fresh capital when the plan was announced in August 2025, but the scope expanded dramatically by February 2026, when Finance Minister John Mbadi confirmed that the Treasury would float an international Expression of Interest for a partner willing to inject between $1.2 Bn and $2.0 Bn. Kamal confirmed talks with at least four investors and ruled out any rebrand. The capital is earmarked to expand the fleet from 34 to roughly 60 aircraft by 2029, a scale that would begin to narrow the gulf with Ethiopian Airlines, whose fleet exceeds 130 aircraft and whose Addis Ababa hub dominates East African long-haul traffic.
There is also an emerging geopolitical tailwind. Days before the results announcement, KQ disclosed that load factors had surged to nearly 100% from 70% in January as the US-Israeli war on Iran disrupted Middle Eastern airspace and diverted passengers through Nairobi instead of Gulf hubs. The demand surge comes at a cost, with each rerouted return flight adding roughly 2.6 Mn in fuel and navigation expenses, and it remains structurally uncertain, contingent on a conflict that could de-escalate as quickly as it intensified. Still, the shift positions Jomo Kenyatta International Airport as an alternative transit hub, a role KQ has long aspired to but never had the fleet to exploit.
Demand is strong, the investor process is live, and fleet plans are ambitious. But KQ has carried negative equity for eight consecutive years, remains exposed to engine supply chains it cannot control, and is searching for a permanent CEO while courting billion-dollar investors. The 2024 profit offered a glimpse of what KQ could become. The 2025 loss is a reminder of what it still is.
