Kenya Airways said global aviation supply-chain disruptions and aircraft maintenance constraints significantly impacted its full-year performance for the period ended 31 December 2025, even as demand for travel remained firm and the airline pursued capacity recovery and diversification.

During the results announcement, Kenya Airways Chairman Kiprono Kittony said the carrier’s performance should be viewed against an industry backdrop of “unprecedented operational constraints”, including supply-chain delays and reduced aircraft availability, rather than a collapse in passenger demand.

“While our financial performance reflects a challenging year, it is important to recognise 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,” Kittony said.

Maintenance, groundings and operating shocks

According to a results backgrounder shared with media, Kenya Airways said maintenance and grounded aircraft were the main drag on 2025 performance, with additional cost pressures stemming from engine shortages, bird-strike damage in Nairobi, longer routings due to airspace closures, and higher fuel burn on rerouted flights to Europe.

The airline estimated that bird strikes have, over roughly seven years, resulted in at least eight engines being on the ground at one point and two engines becoming “beyond economic repair,” according to the backgrounder.

Management also noted that passenger operations remain low-margin, describing passenger unit contribution as “very thin,” which increases the financial impact of disruptions. The airline cited further constraints including supply-chain delays for parts, a global shortage of maintenance, repair and overhaul (MRO) capacity, and the cost of keeping aircraft and employees on the ground while awaiting engines, repairs or scheduled maintenance.

Kenya Airways also pointed to operational constraints at Jomo Kenyatta International Airport (JKIA), including baggage and processing bottlenecks, and to regulatory and tax conditions that, it said, leave African carriers structurally disadvantaged compared with better-supported competitors.

Stabilisation strategy and engineering capability

Kenya Airways said it is entering a second phase of its turnaround centred on stabilisation, capacity recovery and diversification. The airline’s immediate priorities include restoring aircraft availability, protecting cash and reducing the cost burden of an ageing fleet entering heavy maintenance cycles.

Management said several aircraft have been released back to service, with more undergoing A-checks and C-checks between January and June in order to return in time for the June-to-October peak season.

The airline highlighted what it described as its first in-house heavy check on a Boeing 787 as a milestone for its engineering capability. It also said it has regained unrestricted EASA Part 145 certification, including approval for the Boeing 777, which it said strengthens its ability to serve other carriers.

Cargo expansion and market-share targets

Cargo is becoming a larger part of the business model, with management positioning it as a growth engine alongside passenger operations. Kenya Airways said thin passenger margins—estimated at US$1.30–US$1.40 per seat (about KES 168–181, using an indicative rate of KES 129 per US dollar)—make cargo and belly-hold capacity important for resilience.

The airline said it has expanded cargo capacity from 70 tonnes daily (across four 737 freighters) to 180 tonnes, and is targeting a larger share of the market. Kenya Airways said it is handling 28% of Kenya’s cargo market and cited a recent capacity purchase agreement involving a Boeing 747 freighter that moved nearly 100 tonnes inbound from Sharjah and dispatched over 110 tonnes of perishables outbound to the UAE.

Looking ahead, Kenya Airways said two additional 777 freighters, each with 100 tonnes capacity, are planned—one in four months and another by November 2026—targeting over 40% Kenyan market share and 15% African share, subject to partnerships and operating conditions outlined in the backgrounder.

Why it matters for Kenya

The airline argued that its performance and capacity have outsized implications for exporters, tourism, and Nairobi’s position as a regional hub. The backgrounder stated that aviation and tourism drive 40% of Kenya’s services exports, contribute US$3.3 billion to GDP (about KES 426 billion), and support 21,000 direct jobs plus 500,000 indirect jobs. It also said Kenya Airways carries 5.2 million of JKIA’s roughly 9 million annual passengers, or about 60% of total traffic.

For Kenya’s business landscape, the cargo push could support horticulture and other time-sensitive exports, while expanded maintenance capability could reduce reliance on foreign MRO capacity and create new revenue streams from third-party servicing. However, the airline’s outlook remains tied to global supply chains, fleet availability and airport infrastructure performance.

Outlook

Kenya Airways said the outlook is “cautiously positive,” contingent on continued improvement in maintenance recovery, supply-chain access and policy support. The airline expects more aircraft to return to service, stronger cargo contribution and improved unit economics as peak season demand comes through and heavy checks are completed ahead of the busy months.