Kenya’s national carrier, Kenya Airways (KQ), has issued a profit warning for the financial year ending December 31, 2025, projecting a steep decline in earnings despite a global rebound in air travel.

In a statement to shareholders, the airline cautioned that its full-year profits are expected to fall by at least 25 percent compared to 2024 levels. The disclosure comes only months after the airline reported a KSh 12 billion loss for the first half of the year — a sharp reversal from the KSh 513 million profit it recorded over the same period last year.

KQ attributed its deteriorating performance to a combination of operational challenges and global supply disruptions, saying, “The sector has faced notable headwinds, including engine availability issues, persistent spare parts shortages, and limited aircraft supply across the market.”

The airline confirmed that it has grounded three Boeing 787-8 Dreamliner aircraft, representing 38 percent of its wide-body fleet, due to ongoing maintenance and parts delays. The reduced fleet has led to significant capacity cuts and a drop in passenger volumes, further squeezing the airline’s revenues.

Industry analysts say the warning signals renewed financial instability for the carrier, which has struggled to return to consistent profitability despite increased regional demand and a rebound in international travel.

Kenya Airways’ continued losses underscore deeper structural weaknesses — including high debt levels, inefficiencies, and overreliance on leasing — that have left the national carrier lagging behind regional competitors even as global aviation demand improves.

The airline’s statement offered little optimism for a turnaround, noting that the combination of grounded aircraft, supply chain disruptions, and lower capacity utilization will continue to drag down performance through the remainder of 2025.