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Nairobi Business Monthly
Home»Briefing»Turbulent skies: KQ suffers heavy Sh12bn half-year loss in 2025
Briefing

Turbulent skies: KQ suffers heavy Sh12bn half-year loss in 2025

Antony MutungaBy Antony Mutunga29th September 2025No Comments2 Mins Read
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Kenya Airways (KQ) has slumped back into deep financial losses, reporting a staggering loss after tax of Sh12.15 billion for the first half of 2025.

This dismal performance stands in sharp contrast to the modest net profit of Sh513 million the national carrier achieved in the same period last year and the Sh5.43 billion net profit it recorded as at 31st December 2024.

The airline’s half-year results reveal a company grappling with severe operational headwinds that have crippled its revenue stream. Total income fell sharply by 19% to Sh74.50 billion, down from Sh91.49 billion in June 2024.

The Nairobi Law Monthly September Edition

Despite an increase in interest income from Sh23 million in the period last year to Sh35 million this year, the significant revenue drop was primarily driven by a substantial 14% decrease in passenger numbers, which fell to 2.2 million.

Furthermore, the airline’s capacity, measured in Available Seat Kilometers (ASKs), contracted by 16% to 6.72 billion, while the actual revenue generated from filled seats, measured in Revenue Passenger Kilometers (RPKs), saw an even steeper decline of 19%.

This challenging environment quickly turned last year’s operating profit of Sh1.30 billion into an operating loss of Sh6.24 billion for 2025.

The situation was exacerbated by a significant rise in other costs, which ballooned to Sh5.97 billion from just Sh687 million the previous year, dealing a final blow to any hope of profitability before tax. The net outcome is a sobering net margin of -16.3%, indicating that for every shilling of income, the airline lost over sixteen cents.

Looking ahead, the focus for Kenya Airways is squarely on recovery and stabilization. The airline’s management has outlined a two-pronged strategy to navigate out of this crisis.

The immediate priority is addressing critical capacity constraints by focusing on its fleet of aircraft and engines, a known challenge that has limited its operations. Secondly, the carrier aims to restore operational stability and efficiency across its network.

The path to recovery remains steep, but these steps are presented as essential to steering the national carrier back towards calmer financial skies.

The Nairobi Law Monthly September Edition
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Antony Mutunga

Antony Mutunga holds a Bachelors degree in Commerce, Finance from Jomo Kenyatta University of Agriculture and Technology. He previously worked for Altic Investment & Consultancy before he joined NBM team in 2015. His interest in writing ranges from business, economics and technology. He is also our lead researcher in matters business.

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The Nairobi Law Monthly September Edition
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Turbulent skies: KQ suffers heavy Sh12bn half-year loss in 2025

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The Nairobi Law Monthly September Edition
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