Kenya Airways Records $138M Ascribed to Supply Chain Disruptions

Kenya Airways has reported a sharp return to losses in 2025, posting a pre-tax deficit of KSh 17.93 billion ($138.3 million), reversing the profit it achieved a year earlier and underscoring the fragile recovery of Africa’s aviation sector.

The national carrier attributed the downturn largely to global supply chain disruptions that led to the grounding of key aircraft, reduced capacity, and declining revenues, despite strong underlying demand for air travel.

Total revenue fell 14 per cent to KSh 161.47 billion, reflecting an 18 per cent drop in capacity during the year.

According to management, the airline’s performance was significantly affected by the temporary grounding of three Boeing 787-8 Dreamliner aircraft due to delays in sourcing critical spare parts and limited engine availability in the global market.

These constraints reduced operational efficiency and limited the airline’s ability to meet growing demand, particularly on long-haul routes.

“This was driven primarily by global supply chain disruptions and not a lack of demand,” said Chairman Kiprono Kittony, emphasising that market fundamentals remain strong.

Acting CEO George Kamal echoed this view, noting that Kenya Airways’ challenges mirror broader pressures across the global aviation industry, including aircraft delivery delays, engine shortages, and rising maintenance costs.

Despite the financial setback, the airline reported a surge in passenger demand, particularly from Europe, the United States, and Asia, driven in part by changes in global travel patterns linked to the ongoing Middle East conflict.

Kenya Airways has taken advantage of the situation by rerouting passengers through its Nairobi hub, as travellers avoid traditional transit routes through the Gulf.

“We rerouted a lot of customers from Europe. Instead of going through the Gulf, they are now passing through Nairobi,” Kamal said.

The airline now plans to capitalise on this demand by expanding capacity on key routes.

It has announced plans to deploy a Boeing 777-300 aircraft on its London Heathrow route starting in July, a move expected to increase seat capacity and boost revenue on one of its most important international corridors.

In addition, Kenya Airways is exploring the introduction of Boeing 777 freighters to expand cargo capacity by up to 250 tonnes by the end of 2026, as part of efforts to diversify revenue streams.

Operational data shows that the airline carried fewer passengers in 2025, with numbers falling to 4.6 million from 5.2 million the previous year, while cargo volumes also declined.

However, the carrier reported improvements in operational performance, including better on-time performance and higher customer satisfaction scores.

The airline’s Net Promoter Score, a key measure of customer experience, rose to 28, reflecting gains in service quality, punctuality, and cabin experience.

Kenya Airways also received several industry accolades during the year, including recognition as Africa’s Leading Airline and Africa’s Leading Business Class Airline at the World Travel Awards.

Despite these gains, rising operational costs continued to weigh on financial performance.

Engine overhaul expenses have surged globally, with a single overhaul costing up to $15 million, while turnaround times have doubled due to supply chain bottlenecks.

The airline noted that approximately 14 per cent of the global aircraft fleet remains grounded due to similar constraints, tightening capacity and increasing costs across the sector.

While operating costs declined slightly, the reduction was not enough to offset the sharp drop in revenue, resulting in an operating loss for the year.

Kenya Airways remains under financial pressure, with a strained balance sheet and negative equity, reflecting the cumulative impact of years of losses and restructuring efforts.

Looking ahead, the airline says its recovery strategy will focus on raising capital, improving fleet availability, reducing costs, and stabilising operations.

Management remains optimistic that easing global supply constraints and sustained demand growth will support a return to profitability.

However, analysts caution that the airline’s recovery will depend heavily on external factors, including global supply chains and the broader economics of the aviation industry.

For now, Kenya Airways’ results highlight the delicate balance between strong demand and operational limitations in a sector still navigating post-pandemic recovery and ongoing global disruptions.

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