Kenya Airways reported a full-year loss on Tuesday, hit by global aviation supply chain disruptions that grounded aircraft and reduced capacity, even as travel demand remained strong.
The airline posted a loss after tax of 17.2 billion Kenyan shillings ($133 million) for the year ended December 31, 2025, compared to improved performance in the previous year, as operational constraints weighed heavily on revenue.
Chairman Kiprono Kittony said the results reflected an industry grappling with supply shortages rather than weak demand.
“Demand for travel remains robust, but global supply chain disruptions, particularly in aircraft maintenance and engine availability, significantly constrained our operations,” he said.
The carrier was forced to ground three Boeing 787-8 Dreamliner aircraft due to engine shortages, cutting capacity and limiting its ability to meet rising passenger demand.
Available seat kilometres (ASKs), a key measure of airline capacity, fell 18% to 13.3 billion, while passenger numbers dropped 13% in line with reduced fleet availability. Total revenue declined 14% to 161 billion shillings.
Operating costs fell marginally by 3% to 167 billion shillings, reflecting reduced activity, but were offset by costs linked to idle aircraft and persistent high input expenses.
Acting Chief Executive George Kamal said the airline operated in a “complex macroeconomic environment” marked by high fuel and labour costs, geopolitical tensions, and structural challenges across African aviation markets.
Globally, the aviation sector continued its post-pandemic recovery in 2025, but faced ongoing bottlenecks including aircraft delivery delays and constrained maintenance capacity.
Industry body International Air Transport Association projects passenger traffic to grow 4.9% and cargo volumes by 3.1% in the near term, signalling steady but moderating recovery.
Kenya Airways said it is prioritising restoring grounded aircraft, tightening cost controls and advancing a capital raise to improve liquidity and support future expansion.
Despite the financial hit, executives emphasised the airline’s strategic role in enabling trade, tourism and regional connectivity across Africa.
“Kenya Airways is more than an airline; it is a critical enabler of economic integration,” Kamal said, adding the company is focused on long-term resilience and operational recovery.