Kenya Airways Chief Executive Officer Allan Kilavuka has attributed the airline’s KSh 12.1 billion loss in the first half of 2025 to a significant reduction in operational capacity.
Speaking on the company’s financial performance, Kilavuka highlighted that revenue for the period ending June 30 fell 19% to KSh 75 billion, down from KSh 91 billion in the same period last year.
“Half-year results are less than optimal. We have had a significantly reduced capacity for the first half of the year by about 20%, which is attributed to some of our grounded aircraft, including wide-body and narrow-body.
This compromised our revenue by about KSh 17 billion, and that translated to a loss of KSh 12.1 billion,” Kilavuka said, as reported by CNBC Africa.
The CEO explained that the grounding of key aircraft heavily impacted operations but assured that efforts are underway to restore the fleet. “We have been able to bring back one of the aircraft to operation and we will continuously and progressively bring back the other ones. We are looking forward for additional aircraft to increase our fleet,” he added.
Kilavuka stressed that Kenya Airways remains committed to cost optimisation and completing a capital raising programme to strengthen its balance sheet. He said these measures are designed to ensure the airline emerges stronger, leaner, and better positioned to deliver long-term value for shareholders, customers, and partners.
Looking ahead, Kilavuka expressed confidence in the broader aviation market, citing International Air Transport Association (IATA) estimates that global passenger traffic is expected to grow by 5.8% in 2025.
The airline’s challenges reflect wider pressures in the aviation industry, where operational disruptions and grounding of aircraft continue to affect revenue streams. Kenya Airways’ strategy of fleet restoration, cost management, and capital strengthening aims to stabilise operations and support recovery in the months ahead.
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