Kenya Airways Issues Profit Warning as Passenger Numbers Plunge

Kenya, 27 November 2025 - The national airline, Kenya Airways (KQ), has issued a stark profit warning for the full year 2025, signalling a hard landing after an earlier rebound.

The airline expects its net profit to drop by at least 25%, or roughly KSh 1.35 billion, compared to the KSh 5.4 billion net profit reported for the year ending December 2024.

This caution comes against a backdrop of sharp reductions in passenger traffic, fleet grounding and global supply-chain pressures that have hit many airlines worldwide, but which for KQ may reverse the gains it made earlier this year.

What Went Wrong: Grounded Planes and Falling Demand

In the first half of 2025, KQ posted a net loss of KSh 12.15 billion, a dramatic reversal from the KSh 513 million profit in the same period in 2024.

Passenger numbers fell 14% to about 2.2 million Jan–June 2025, down from 2.54 million in the same period last year.

Available seat-kilometres (ASKs), a measure of capacity, dropped by 16%, while revenue plunged 19%, falling to approximately KSh 74.5 billion from KSh 91.5 billion.

The root cause: KQ grounded three of its nine Boeing 787-8 Dreamliners, roughly a third of its wide-body fleet, citing global shortages of aircraft parts and delayed engine maintenance.

As a result, the airline’s capacity and ability to service long-haul and high-demand routes were severely hampered. Operating costs were moderately reduced (by about 10%), but increased fleet ownership costs and other overheads aggravated the losses.

Kenya Airways CEO Allan Kilavuka acknowledged the difficulties.

“The first half of 2025 was defined by industry-wide challenges that directly impacted our performance, particularly the grounding of three of our aircrafts,” he said.

“We remain committed to restoring aircraft availability, containing costs and pursuing strategic investment to strengthen our financial footing.”

From Profit to Warning: From 2024 Gains to 2025 Headwinds

Only months ago, KQ had recorded its first full-year profit since 2013, a turnaround many analysts considered a sign of revival. The 2024 net profit of KSh 5.4 billion was credited to improved traffic, cargo demand, and cost-cutting under “Project Kifaru.”