Kenya Airways has issued a profit warning indicating its 2025 earnings will fall by at least 25% compared to 2024Three Boeing 787-8 Dreamliners were grounded, leading to reduced capacity, lower passenger numbers, and weakened revenueThe airline made a KSh 5.4 billion profit in 2024 but slipped into a KSh 12.1 billion net loss in the first half of 2025 as revenue and seat capacity droppedElijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Kenya Airways has warned investors that its earnings for the 2025 financial year will fall by at least 25% compared to 2024.
Kenya Airways plane during a flight and CEO Allan Kilavuka speaking during a partnership signing with LondonMet. Photo: Kenya Airways.
Source: TwitterThe carrier, in a notice issued by its board, said the downgrade is based on forecast results for the year ending December 31, 2025.
“The board brings to the attention of the public that the earnings for the current financial year 2025 are expected to be lower by at least 25% than the earnings reported for the same period in FY2024,” the notice read.Why did Kenya Airways issue a profit warning?In the notice, the airline cited severe operational disruptions caused by grounded aircraft and persistent supply chain challenges.
The airline acknowledged that while global air travel continues to rebound on the back of strong international passenger demand, the industry is still grappling with key constraints.
Engine shortages, limited availability of spare parts, and a tight global market for aircraft have left carriers exposed.
The airline confirmed that three of its Boeing 787-8 Dreamliners, representing a third of its wide-body fleet, have been grounded due to these issues.
The loss of the long-haul aircraft has reduced capacity and dragged down passenger numbers, dealing a direct hit to revenue.
What is Kenya Airways doing?Despite the setbacks, the board said management is pushing ahead with recovery measures aimed at stabilising operations.
These include efforts to return the grounded aircraft to service, aggressive cost-cutting, and pursuing strategic partnerships and capital-raising initiatives.
The profit warning was issued with the approval of the Capital Markets Authority.
Kenya Airways plane at the JKIA in Nairobi. Photo: Kenya Airways.
Source: TwitterHow much profit did Kenya Airways make in 2024?Kenya Airways reported a net profit of KSh 5.4 billion for 2024 after a loss of KSh 22.7 billion in 2023.
The airline recorded total income of KSh 188.5 billion compared to KSh 178.5 billion in 2023.
Kenya Airways posted an operating profit of KSh 16.6 billion after recording KSh 10.5 billion in 2023.
Notably, the airline ended 2024 with liabilities of KSh 297.3 billion, an improvement from the KSh 317.9 billion in 2023.
However, the company’s finances took a turn for the negative in 2025. Kenya Airways posted a KSh 12.1 billion net loss in the first half of 2025.
This is after its revenue fell to KSh 75 billion due to a drop in passenger numbers and reduced seat capacity, owing to the grounding of three Dreamliners for the slump.
The carrier reported an operating loss of KSh 6.2 billion as fleet ownership costs rose, but it remains confident in its recovery as one aircraft is already back in service and the remaining two are expected to return later in the year.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
