Kenya Airways’ net loss widened 32% to KSh 16.08 Bn in the six months to June 2026, the second-largest half-year loss in a financial series going back to 2008, as surging fuel and maintenance costs and constrained aircraft availability overwhelmed stronger passenger demand.
- •Revenue rose 9% to KSh 81.25 Bn despite 9% less capacity, but operating costs climbed 14% to KSh 91.90 Bn, pushing the carrier to its largest half-year operating loss in the assembled series at KSh 10.64 Bn.
- •The performance deepens a reversal that began after Kenya Airways briefly returned to half-year profitability in 2024.
- •Its net result swung from a KSh 21.70 Bn loss in H1 2023 to a KSh 513 Mn profit in H1 2024, before sliding back to losses of KSh 12.15 Bn in 2025 and KSh 16.08 Bn this year.
Operating profitability has deteriorated alongside that reversal, with the airline’s EBITDAR margin falling for three consecutive half-years from 14.7% in 2023 to 13.5% in 2024, 10.5% in 2025 and 8.4% in 2026.
Unlike last year’s downturn, however, the latest deterioration was not driven by falling revenue. Available seat kilometres declined 9% to 6.08 Bn and block hours fell 8%, yet cabin factor improved 3.9 percentage points to 76.3%. Management said stronger aircraft utilisation, commercial performance and average coupon values helped lift revenue despite the capacity constraint.
Cargo was another bright spot, with revenue rising 18% to KSh 8.77 Bn, as KQ targets an increase in its cargo market share from 11% to 40%.
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The gains were absorbed by costs. Kenya Airways said its fuel bill jumped 32% to about KSh 29 Bn, accounting for roughly 32% of operating expenses and 52% of direct operating costs. Global shortages of engines and spare parts also prolonged maintenance cycles and restricted aircraft availability. The airline nevertheless generated KSh 11.42 Bn in net operating cash, up 48% from KSh 7.74 Bn a year earlier, although closing cash declined to KSh 4.05 Bn after investing and financing outflows.
The losses are also rebuilding pressure on a balance sheet that had begun improving during the earlier recovery. Negative equity widened to KSh 147.86 Bn from KSh 132.07 Bn at December, while liabilities rose to KSh 328.16 Bn. Acting CFO Mary Mwenga said KQ’s debt portfolio stands at about KSh 152 Bn, roughly 90% of it owed to the Kenyan government.
Management is betting that restoring aircraft capacity can convert still-resilient demand into better margins. A Boeing 787-8 returned to service in July and a Boeing 777-300ER has also been redelivered. Chairman Kiprono Kittony said the carrier’s priorities are operational stability, tighter cost management, lower leverage and completion of a planned capital raise, with discussions with prospective strategic investors continuing.
