National carrier Kenya Airways Plc (KQ) has issued a profit warning, expecting earnings for the current financial year 2025 to decline by at least 25% compared to the earnings recorded in the same period in FY 2024.
The state-backed airline made the announcement based on forecasted financial results for the company for FY 2025, citing challenges such as engine availability, persistent spare parts global supply chain constraints, as well as aircraft shortages as key drivers for the grounding of three Boeing 787-8 Dreamliner aircraft, which make up 33% of its wide-body fleet. The grounding of the three Boeing Dreamliner aircraft has significantly impacted the Airline’s performance due to reduced capacity and a drop in passenger numbers.
Kenya Airways FY 2024
In FY 2024, Kenya Airways recorded impressive results, rebounding to profitability after 12 consecutive years of losses. The Jomo Kenyatta International Airport (JKIA) hub airline posted a profit of KES 5.4 billion, its highest ever, compared to a KES 22.86 billion loss in FY 2023. Kenya Airways’ revenue rose by 6% to KES 188.5 billion, supported by higher passenger numbers, which increased by 4% to 5.23 million from 5.04 million in FY 2023.
The airline’s Board of Management reaffirmed its commitment to ongoing recovery efforts, including returning grounded aircraft to service, strengthening cost controls, and executing partnerships and capital-raising initiatives aimed at stabilizing operations and improving the company’s financial performance.
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