National flag carrier Kenya Airways has slipped back into the red territory, suffering Kes17.2 billion in losses for the trading period ending December 2025, reflecting a sharp reversal from the Kes5.4 billion loss reported a year earlier.

KQ's Kes5.4 billion net earnings had raised hopes for a turnaround for the carrier which had suffered huge losses in the past decade.

According to disclosures, KQ saw revenues decrease by Kes27 billion to Kes161.4 billion, pushing the Nairobi Securities Exchange-listed firm to Kes5.6 billion operating loss.

The company said the deterioration of its performance was caused by the grounding of its Boeing 787-8 Dreamliner aircraft, a move that was due to worsening global supply of parts besides limited availability of engines.

"While our financial performance reflects a challenging year, it is important to recognize that 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 been more evident," Kenya Airways Board Chairman Kiprono Kittony noted.

Ag. CEO George Kamal revealed that the firm will be receiving engines next month "to release one of the two grounded B787s. A further two engines will be delivered in May and June to support the return of the second aircraft ahead of the high season, Kamal added.

KQ's loss announcement comes at a time when the carrier is experiencing increasing demand tied to the ongoing conflict in the Middle East that has destabilized operations in travel hubs of Dubai, Abu Dhabi and Doha in Qatar.

Rising seat occupancy amid Middle East conflict

On Monday, Ag. KQ Chief Executive George Kamal revealed that the airline is reporting 99 percent seat occupancy in March, with load factors reported at 90 percent on some routes, a trend that is unusual during this "low season” period of the year.

As global travelers adjust their U.S., Europe, and Asia routes, KQ said its strategically increasing flights to serve rising demand as the Middle East conflict enters the fourth week.

KQ has been in the loss making territory in the past decade. In 2015, the company reported record Kes25.74 billion losses, before plunging into a wider Kes26.2B loss in the period ended December 2016. These losses were attributable to faulty fuel hedging and expansion strategies.

In the year that followed, 2017-2018, the national carrier continued reporting losses, albeit a narrower Kes7.55 billion losses in 2018.

During the Covid-19 pandemic years of between 2020 and 2022, global travel disruptions saw KQ suffer Kes9.89 billion losses in the first half of 2022 before worsening in 2023 to Kes22.69 billion.

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