KQ hints on restoring operational capacity,strengthening financials

• Kenya Airways Reaffirms Strategic Importance on the Back of Global Aviation Constraints;

Kenya Airways(KQ) has announced its full-year results for the period ending 31 December 2025, reflecting a performance significantly impacted by global aviation supply chain disruptions.

During the announcement, Kenya Airways Chairman Kiprono Kittony, underscored the airline’senduring strategic role in connecting markets and enabling economic growth.

The results, he said, must be viewed within the broader context of an industry facing unprecedentedoperational constraints, but still underpinned by strong fundamentals,mainly strong travel demand.

“While our financial performance reflects a challenging year, it is important to recognisethat this was driven primarily by global supply chain disruptions and not a lack of demand.

The appetite for travel remains strong, and the strategic relevance of Kenya Airways has never beenmore evident,” he observed.

He added that the board will continue to support management, which is singularly focusedonstabilising the airline in the short term while building long-term resilience and sustainability, emphasising the carrier’s importance as a strategic national asset.

Kenya Airways operations were materially affected by the temporary grounding of three Boeing787-8 Dreamliner aircraft due to global supply chain constraints and limited engine availability, resulting in reduced capacity across key routes.

 Capacity, measured in Available Seat Kilometres (ASKs), declined by 18% to 13,349 million, underscoring the direct impact of fleet constraints on performance.

 Revenue declined by 14% (KShs 27 billion), driven by a 13% drop in passenger numbersfollowing an 18% reduction in capacity

 Total revenue closed at KShs 161 billion
 Operating costs decreased by 3% to KShs 167 billion, reflecting reduced operational activityand carrying costs of idle capacity (grounded fleet)

 The Group recorded an operating loss of KShs 5.6 billion.Loss after tax stood at KShs 17.2billion

Industry Context;
According to Ag. Group Managing Director and Chief Executive Officer, George Kamal, The global aviation sector continued its recovery in 2025, supported by robust passenger demand, particularly on international routes.

However, the industry faced persistent headwinds, including aircraft delivery delays, engine shortages, and ongoing supply chain disruptions.

“Kenya Airways operated in a complex macroeconomic landscape marked by elevatedinput costs, particularly fuel and labour, and ongoing geopolitical uncertainty.

Within Africa, structural challenges, including infrastructure limitations and elevated operating costs, continue to shape the operating environment.

Cargo performance softened amid slower global trade and shifting tariff regimes, while regulatory costs continued to exert pressure across the sector,” said George Kamal.

Macroeconomic Environment;The Kenya Shilling remained relatively stable during the year, in contrast to 2024, whichhadbenefited from significant foreign exchange gains.

Tensions in the Middle East pose a potential risk to the sector through fuel price volatilityandairspace restrictions, which could increase operating costs due to longer routes and higher fuel consumption.

Strategic Focus and Outlook;
Looking ahead, Kenya Airways is focused on restoring operational capacity, strengthening its financials, and positioning the business for sustainable growth.

Key priorities include:
Fleet Restoration:Returning grounded aircraft to service to unlock capacity and revenue
Cost Discipline: Continued focus on efficiency, cost management, and cash conservation

Capital Raising: Advancing capital raise to strengthen liquidity, support fleet expansion, anddiversify revenue streams
According to the International Air Transport Association (IATA), global passenger traffic is projected to grow by 4.9%, with cargo expected to increase by 3.1%, reflecting steady but moderated 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 by building a stronger, resilient and more agile Kenya Airways,” said Kamal.

Strategic Relevance Reinforcing the broader role of aviation, Kamal added, “Kenya Airways is more than an airline; it is a critical enabler of trade, tourism, and regional integration.

Our value extends beyondfinancial results to the economic connectivity we provide across Africa and globally.”

He concluded: “The skies may be turbulent today, but our direction is clear and our destination is long-term, sustainable growth.”

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