Kenya Airways has reaffirmed its strategic role in connecting markets and supporting economic growth despite reporting a challenging financial performance for the year ended December 31, 2025.
The national carrier said its results were significantly impacted by global aviation supply chain disruptions, which constrained operations even as demand for air travel remained strong.
Speaking during the results announcement, Chairman Kiprono Kittony said the airline’s performance should be viewed within the context of industry-wide operational challenges rather than weak demand.
“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,” Kittony said.
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The airline’s operations were affected by the temporary grounding of three Boeing 787-8 Dreamliner aircraft due to limited engine availability, reducing capacity across key routes.
Available Seat Kilometres (ASKs) declined by 18 per cent to 13,349 million, while passenger numbers dropped by 13 per cent. Revenue fell by 14 per cent, or KSh 27 billion, to close the year at KSh 161 billion.
Operating costs declined by 3 per cent to KSh 167 billion, reflecting reduced activity and the cost implications of grounded aircraft. The airline posted an operating loss of KSh 5.6 billion and a net loss of KSh 17.2 billion.
Acting Group Managing Director and CEO George Kamal said the airline operated in a complex global environment marked by rising input costs and persistent supply chain challenges.
“The global aviation sector continued its recovery in 2025, supported by strong passenger demand, particularly on international routes. However, the industry continues to face headwinds, including aircraft delivery delays, engine shortages, and geopolitical uncertainty,” Kamal said.
He added that within Africa, structural constraints such as high operating costs and infrastructure limitations continue to shape airline performance, even as travel demand grows.
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Cargo operations softened during the year amid slower global trade and changing tariff regimes, while regulatory costs remained elevated across the sector.
On the macroeconomic front, the Kenyan shilling remained relatively stable compared to 2024, which had seen significant foreign exchange gains. However, ongoing tensions in the Middle East pose risks through potential fuel price volatility and airspace restrictions that could increase operational costs.
Looking ahead, Kenya Airways said it will prioritise restoring capacity, strengthening its financial position, and building long-term resilience.
Key focus areas include returning grounded aircraft to service, maintaining strict cost discipline, and advancing capital raising initiatives to support fleet expansion and liquidity.
According to the International Air Transport Association (IATA), global passenger traffic is expected to grow by 4.9 per cent, while cargo volumes are projected to increase by 3.1 per cent, signalling continued recovery in the aviation sector.
Kamal said the airline’s long-term strategy goes beyond recovery.
“We are taking deliberate steps to stabilise the business in the near term while laying the foundation for long-term resilience. Our focus is not just recovery, but reinvention,” he said.
He added that Kenya Airways remains a critical national asset, supporting trade, tourism, and regional integration.
“The skies may be turbulent today, but our direction is clear, and our destination is long-term, sustainable growth,” Kamal said.
