Kenya Airways has suffered a deeper financial setback in the first half of 2026, posting a net loss of Ksh 16.08 billion despite recording one of its strongest half-year revenue performances.
The national carrier’s loss increased from Ksh 12.15 billion recorded in the same period last year, representing a rise of about 32 per cent. The latest figures show that while more passengers and cargo helped lift revenue, the airline was unable to keep its rapidly rising costs under control.
Kenya Airways recorded total income of Ksh 81.25 billion in the six months to June, up from Ksh 74.5 billion a year earlier. The figure was the airline’s second-highest half-year revenue on record and reflected stronger passenger demand, improved aircraft utilisation and growth in its cargo business. Cargo revenue alone rose 18 per cent to Ksh 8.77 billion.
However, expenses grew faster than income. Operating costs rose 13.8 per cent to Ksh 91.9 billion from Ksh 80.7 billion in the first half of 2025. This pushed the operating loss to Ksh10.64 billion, compared with Ksh 6.24 billion in the previous year.
Fuel becomes a major burden
Fuel was among the biggest problems facing the airline during the period. Kenya Airways spent about Ksh29 billion on fuel, with the cost rising sharply amid higher global jet fuel prices and instability linked to the conflict in the Middle East.
Reuters reported that KQ’s fuel bill rose by 72 per cent during the first half of the year. The airline also faced delays in obtaining aircraft parts, adding pressure to maintenance and fleet availability.
Chief Financial Officer Mary Mwenga said the Middle East crisis had pushed fuel costs higher, adding to the airline’s overall cost burden.
Aircraft availability has remained another challenge. Supply chain problems have delayed access to engines, spare parts and other components, leaving some aircraft unavailable for operations and limiting the number of flights KQ can operate.
The airline has nevertheless been working to restore capacity. In July, a Boeing 777-300ER returned to the fleet after the expiry of its long-term lease to Turkish Airlines. The aircraft was deployed on the Nairobi to London Heathrow route, providing additional passenger and cargo capacity.
KQ seeks a turnaround
The latest results come after a difficult 2025, when Kenya Airways posted a full-year net loss of Ksh 17.16 billion after recording a Ksh 5.4 billion profit in 2024.
The airline is now focused on rebuilding capacity, improving reliability and controlling expenses while seeking additional capital to strengthen its balance sheet.
Acting Group Managing Director George Kamal said the airline’s main challenge was not a shortage of customers but turning demand into profitable growth.
For Kenya Airways, the first half results underline the difficult task ahead. Revenue is recovering, but unless fuel, maintenance and other operating costs are brought under control, stronger sales alone may not be enough to return the national carrier to profitability.
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