Kenya Airways defends record Sh17b loss
Business
By
Raymond Muthee
| Mar 31, 2026
Kenya Airways has assured its customers and the public of the company's stability despite its loss-making trajectory in the 2025 financial results.
Last week, the national carrier announced a net loss of Sh17.1 billion, a sharp reversal from the Sh5.4 billion profit recorded in 2024, which had briefly raised hopes of a sustained turnaround.
In a customer update statement dated March 30, the airline was emphatic that services remain uninterrupted.
"We wish to reassure our customers, partners, and the public that our operations remain normal, with flights operating as per schedule across our network," KQ said.
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"We have weathered numerous storms, including COVID-19, security incidents, health crises and geopolitical disruptions and have continued to be a beacon of resilience. We have endured all these and consistently met our obligations to support our customers in times of distress," the airline stated, adding that the 'industry-wide challenges' are not unique to Kenya Airways and the impact could not deter the airline from meeting its obligations.
KQ attributed the downturn largely to operational constraints, mostly after the temporary grounding of three Boeing 787-8 Dreamliner aircraft due to engine availability issues and persistent global spare parts supply chain disruptions. The aircraft accounts for a third of its wide-body fleet,
In the statement, it also cited continued backing from the Government of Kenya, describing itself as a strategic national asset.
According to financial results released on March 24, KQ's total revenues dropped by 14 per cent to Sh161.5 billion from Sh188.5 billion posted in 2024. Passenger numbers fell from 5.2 million to 4.6 million, a 13 per cent decline, following an 18 per cent reduction in capacity, while cargo volumes decreased by eight per cent.
"While our financial performance reflects a challenging year, it is important to recognise that this was driven primarily by global supply chain disruptions and not a lack of demand. The appetite for travel remains strong, and the strategic relevance of Kenya Airways has never been more evident," said KQ Chairman Kiprono Kittony during the results announcement.
The latest loss adds to a troubled financial history. The carrier has recorded net losses in 13 of the past 16 years, with cumulative losses since 2010 exceeding Sh200 billion ($1.54 billion). Before the 2024 profit, it had been loss-making since 2013, with the nadir being a Sh38.3 billion loss in 2022.
The customer assurance statement comes just days after Acting Group Managing Director and CEO George Kamal said the carrier is cautiously optimistic about 2026, counting on the return of grounded aircraft and policy support. However, he flagged rising headwinds, including high fuel prices linked to tensions in the Middle East.
"Tensions in the Middle East pose a potential risk to the sector through fuel price volatility and airspace restrictions, which could increase operating costs due to longer routes and higher fuel consumption," Kamal said. "Within Africa, structural challenges, including infrastructure limitations and elevated operating costs, continue to shape the operating environment," he added, while noting opportunities remain in connecting the continent.
Kenya Airways said its recovery strategy will centre on raising capital to address aircraft and engine constraints, cutting costs, stabilising operations, and expanding cargo capacity. The airline has recently added a B747 freighter to its fleet and is targeting two additional Boeing 777 freighters, each with a 100-tonne capacity, by November 2026, with ambitions to capture a 40 per cent share of the Kenyan cargo market and 15 per cent of the African market.
"Customers can continue to book and travel with confidence, as all valid tickets remain fully honoured," KQ said.