Kenya Airways (KQ) has reversed its brief return to profitability, posting a staggering pretax loss of KES 12.17 billion in the first half of 2025—marking a dramatic decline from the KES 634 million pretax profit recorded in the same period of 2024 .
Revenue Dive and Fleet Grounding Slash Profits
The sharp downturn was attributed to a drop in operating revenue to KES 74.5 billion (from KES 91.5 billion a year earlier), while the airline swung to an operating loss of KES 6.23 billion—down from an operating profit of KES 1.3 billion in H1 2024 .
A key factor: three Boeing 787-8 Dreamliners were grounded for maintenance, pulling passengers and revenue down, though one returned to service in July, and the airline hopes to have its full Dreamliner fleet operational by 2026 .
Capital Drive Amid Lingering Challenges
In response, Kenya Airways is launching a major fundraising drive, aiming to raise at least US$500 million by early 2026 to modernize and replenish its fleet. CEO Allan Kilavuka is targeting shareholder approval and a finalized capital raising strategy by Q1 2026 .
From Brief Resurgence to Rising Doubts
This setback comes on the heels of a brief comeback: in the full year 2024, the airline posted a pretax profit of KES 5.53 billion—its first in over a decade—thanks largely to substantial foreign exchange gains amid a stronger shilling, as well as improved revenues and cost discipline under its Project Kifaru turnaround program .
While these initiatives—including operational efficiencies, a pyro-diesel plant, and a water bottling operation—helped boost the bottom line, analysts caution that the airline remains highly exposed to currency fluctuations and still wrestles with a heavy debt load .
Cost efficiency under review: With revenue plunging and operating costs still high, Kenya Airways must accelerate its turnaround strategies.
Debt burden looms large: The need for strategic investors and debt restructuring is more urgent than ever.
Fleet availability critical: Restoring full operational capacity is essential for passenger confidence and income recovery.
Forex sensitivity: The airline’s viability still hinges partly on external currency trends—not just internal improvements.
