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Grounded jets and supply chain woes drive $133 million loss for Kenya Airways

Zoyols News

Kenya Airways has reported a significant financial setback for the 2025 fiscal year, posting a loss after tax of 17.2 billion Kenyan shillings, which translates to approximately $133 million. The national carrier attributed this decline to severe disruptions in the global aviation supply chain that left several of its aircraft grounded and sharply limited its capacity to serve travelers.

According to financial data reviewed by Reports, the airline faced these challenges despite a period of robust demand for air travel. Chairman Kiprono Kittony clarified that the loss does not stem from a lack of passengers but rather from a global shortage of aircraft parts and engine availability. These constraints forced the carrier to ground three of its Boeing 787-8 Dreamliners, a move that directly hindered its ability to capitalize on the rising interest in regional and international flights.

The operational impact was reflected in the airline’s key performance metrics. Capacity, measured in available seat kilometers, dropped by 18 percent to 13.3 billion, while total passenger numbers saw a corresponding 13 percent decline. Consequently, total revenue for the year fell by 14 percent, landing at 161 billion shillings. While operating costs saw a slight 3 percent dip due to reduced flight activity, the savings were largely wiped out by the expenses associated with maintaining idle aircraft and the persistent high costs of fuel and labor.

Acting Chief Executive George Kamal described the current business landscape as a complex macroeconomic environment. He noted that beyond supply chain bottlenecks, the airline has had to navigate geopolitical tensions and structural hurdles unique to the African aviation market. These local issues mirror a broader global trend where, despite a post-pandemic recovery, the industry continues to struggle with delivery delays and limited maintenance capacity.

Looking ahead, Kenya Airways is focusing its efforts on a recovery strategy that prioritizes getting its grounded fleet back into the skies. The management team is also moving forward with a capital raise intended to boost liquidity and provide a more stable foundation for future expansion. Tightening cost controls remains a top priority as the airline seeks to return to profitability.

Despite the current financial strain, the leadership remains optimistic about the carrier’s long-term value. Executives emphasized that the airline continues to serve as a vital link for trade, tourism, and economic integration across the continent. Kamal reiterated that the focus is now on building operational resilience to ensure the company can withstand future market volatility while supporting regional growth.

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