By Eddah Waithaka
National carrier posts KShs 16.1 billion half-year loss as geopolitical tensions drive up operating expenses
Kenya Airways PLC grew revenue by 9% to KShs 81 billion for the six months ended 30 June 2026, defying a 9% reduction in capacity through stronger aircraft utilisation and improved commercial performance, the airline announced today.
The revenue increase came despite significant headwinds facing the global aviation industry, with the carrier achieving a four-percentage-point improvement in cabin factor alongside strong average coupon values.
“We grew revenue by 9% to KShs 81 billion despite operating with 9% less capacity,” said Dr. George Kamal, Ag. Group Managing Director and Chief Executive Officer. “The improvement in our cabin factor and the strength of average coupon values demonstrate that demand for our network remains resilient.”
Soaring fuel costs squeeze margins
The airline’s first-half performance unfolded against an exceptionally challenging cost environment. Jet fuel prices rose sharply during the period, driven principally by geopolitical tensions in the Middle East.
The increase pushed KQ’s fuel costs up 32% compared with the same period last year, with fuel now accounting for approximately 32% of total operating expenses and 52% of direct operating costs.
Persistent global supply-chain constraints compounded the pressure. Shortages of critical spare parts, extended lead times and delays in component availability affected aircraft availability and operational reliability.
Total operating costs increased by 14%, placing significant pressure on margins and pushing the national carrier to a loss after tax of KShs 16.1 billion, compared with a loss of KShs 12.2 billion in the corresponding period last year.
Fleet restoration underway
A significant positive development since the end of the reporting period has been the return of additional aircraft to service. One Boeing 787-8 resumed operations in mid-July 2026, while a Boeing 777-300 ER has also been redelivered and returned to Kenya Airways operations.
The restoration of aircraft capacity is expected to strengthen network resilience, improve operational flexibility and enable the airline to capture additional demand as market conditions improve.
“Our focus now is firmly on recovery and building a stronger Kenya Airways,” noted Kiprono Kittony, Kenya Airways Chairman. “We will continue to manage costs rigorously, conserve cash, restore fleet capacity, reduce leverage and complete our capital raising. These actions are designed to create a more stable platform from which the airline can pursue long-term growth.”
Strategic priorities outlined
The airline’s immediate priorities include restoring fleet availability and maintaining disciplined capacity deployment; accelerating cost-reduction initiatives while preserving cash and strengthening liquidity; improving operational resilience, reliability and aircraft utilisation; and completing the planned capital raising for a more sustainable financial foundation.
“We remain confident in the long-term prospects of the airline and its role in connecting Africa to the world,” Kittony added. “We remain focused on strengthening our operational and financial foundations while continuing to deliver reliable connectivity to our customers and supporting the broader economic and tourism ecosystem in the markets we serve.”
