Kenya Airways has recorded a 9 per cent increase in revenue to Ksh81 billion for the six months ended June 30, 2026, despite operating with reduced capacity and facing soaring fuel costs and aircraft shortages.
The national carrier’s revenue grew even as its capacity fell by 9 per cent, with improved aircraft utilisation, stronger ticket values and a four-percentage-point increase in cabin factor helping drive the performance.
“We grew revenue by 9% to Ksh 81 billion despite operating with 9% less capacity. The improvement in our cabin factor and the strength of average coupon values demonstrate that demand for our network remains resilient,” said Dr George Kamal, KQ's Acting Group Managing Director and Chief Executive Officer (CEO).
However, the improved revenue did not translate into a smaller loss. Kenya Airways recorded a loss after tax of Ksh16.1 billion during the period, up from Ksh12.2 billion in the first half of 2025.
The airline attributed the deterioration largely to a sharp rise in operating costs, particularly fuel expenses.
Fuel bill jumps 32%
KQ’s fuel costs increased by 32 per cent compared to the same period last year, driven largely by geopolitical tensions in the Middle East.
Fuel accounted for about 32 per cent of the airline’s total operating expenses and 52 per cent of its direct operating costs.
Overall operating costs increased by 14 per cent, putting further pressure on the airline’s margins despite the growth in revenue.
The national carrier was also affected by global supply-chain disruptions, including shortages of critical aircraft spare parts, longer delivery timelines and delays in obtaining components needed to keep aircraft operational. These challenges reduced aircraft availability and affected operational reliability.
Two aircraft return to KQ fleet
Kenya Airways is now banking on improved fleet availability to support its recovery. A Boeing 787-8 returned to service in mid-July, while a Boeing 777-300ER has also been redelivered and returned to operations.
The additional aircraft are expected to increase KQ’s available capacity, improve flexibility across its network and allow the airline to take advantage of recovering passenger demand.
KQ Chairman Kiprono Kittony said the airline was prioritising financial recovery while rebuilding its fleet and strengthening its balance sheet.
“Our focus now is firmly on recovery and building a stronger Kenya Airways. We will continue to manage costs rigorously, conserve cash, restore fleet capacity, reduce leverage and complete our capital raising,” Kittony said.
He added that the measures were intended to create “a more stable platform from which the airline can pursue long-term growth.”
KQ targets financial recovery
The airline’s immediate recovery strategy includes restoring aircraft availability, controlling capacity deployment, cutting costs, conserving cash and improving operational reliability.
KQ is also working to complete a planned capital raising as it seeks to establish a more sustainable financial position.
Despite the heavy first-half loss, Kittony maintained that the airline remained optimistic about its long-term prospects. “We remain confident in the long-term prospects of the airline and its role in connecting Africa to the world,” he said.
The chairman added that KQ would continue strengthening its operational and financial foundations while maintaining connectivity for customers and supporting tourism and economic activity across the markets it serves.
The latest results come as Kenya Airways continues its broader turnaround efforts, with fleet restoration, cost control, debt reduction and fresh capital expected to determine how quickly the national carrier can return to sustainable growth.
