Kenya Airways Reports First-Half Loss Due to Grounded 787s

What's Happening?

Kenya Airways has reported a net loss of KShs12.2 billion ($94 million) for the first half of 2025, primarily due to the grounding of three Boeing 787s, which constitute one-third of its widebody fleet. The airline had previously achieved its first full-year net profit in over a decade in 2024, despite similar issues with 787 groundings. The grounding was exacerbated by global supply chain disruptions and engine availability constraints, reducing the airline's overall capacity by approximately 16% year-on-year. The overhauls of the GE Aerospace GEnx-1B engines powering the 787 fleet are taking longer than usual, with durations extending from 60 to 90-120 days. Kenya Airways anticipates the return of the two remaining grounded 787s later in the year, which should improve its operational capacity.

Why It's Important?

The financial loss experienced by Kenya Airways highlights the significant impact of supply chain disruptions on the aviation industry. The grounding of aircraft due to engine availability issues not only affects the airline's operational capacity but also its financial performance. This situation underscores the broader challenges faced by airlines globally, as they navigate supply chain constraints and increased demand for spare parts. The return of the grounded aircraft later in the year is crucial for Kenya Airways to restore its capacity and improve its financial outlook. The airline's experience may serve as a case study for other carriers dealing with similar issues.

What's Next?

Kenya Airways is preparing for the return of the two remaining grounded 787s later in 2025, which is expected to enhance its operational capacity. The airline will continue to monitor supply chain developments and engine availability to mitigate future disruptions. Stakeholders in the aviation industry may need to explore alternative strategies to address supply chain challenges, such as diversifying suppliers or investing in more efficient maintenance processes.