By Kimberly Kalusi

Kenya Airways (KQ) has slipped back into the red, posting a Sh12.15 billion half-year net loss to June 30, 2025 — a sharp reversal from the Sh513 million profit it recorded during the same period last year.

The flag carrier, which had celebrated its first full-year profit in over a decade in 2024 (Sh5.4 billion), is now blaming grounded aircraft and global supply chain hitches for the financial nosedive.

KQ Chief Executive Allan Kilavuka revealed that three of the airline’s nine Boeing 787-8 Dreamliners were out of service during the period, cutting a third of its long-haul fleet capacity.

“The first half of 2025 was defined by industry-wide challenges that directly impacted our performance. These headwinds are temporary and not reflective of the fundamentals of the business,” Kilavuka said. “Our outlook remains strong, and by 2026 we expect the entire fleet to be operational.”

One Dreamliner returned to service in July, with the remaining two expected to resume flights before the year ends.

Revenues and Passenger Numbers Fall

The airline’s revenues dipped 19% to Sh74.5 billion, down from Sh91.49 billion in the first half of 2024. With fewer aircraft in operation, passenger numbers dropped 14%, while cargo volumes fell by 8%.

Operating costs, meanwhile, declined 10.5% to Sh80.74 billion, thanks to reduced flight activity. Still, customer frustration grew as delays and cancellations piled up, with many pointing fingers at KQ’s tight schedules and reduced capacity.

“When one aircraft is out, the entire network feels the pressure,” Kilavuka admitted.

KQ’s return to loss-making comes as a disappointment for investors and the government, especially after last year’s remarkable turnaround that had raised hopes of long-term recovery.

Industry analysts, however, note that aviation remains highly cyclical, and while the current storm is hurting KQ, rising demand for African travel and fleet recovery could help the airline regain momentum.

For now, however, Kenya Airways finds itself back on shaky ground — once again battling turbulence on its long road to stability.