2 September 2026

Kenya Airways Revenue Rises 9% as Fuel Costs Push Half-Year Loss to KShs 16.1 Billion

Kenya Airways grew first-half 2026 revenue 9% to KShs 81 billion despite 9% less capacity, but fuel costs rose 32% and the loss after tax widened to KShs 16.1 billion.

Kenya Airways is working to restore fleet capacity while managing higher fuel costs and strengthening its financial position. [Supplied by: Kenya Airways]

Written by:

Phillippa Dean

Why this article matters
Kenya Airways’ first-half results show that stronger demand and improved aircraft utilisation are not yet translating into profitability. Revenue increased despite lower capacity, but higher fuel costs, supply-chain constraints and continued fleet availability challenges pushed the airline to a larger KShs 16.1 billion loss. The return of additional widebody aircraft and the planned capital raise will be important to restoring capacity, improving operational resilience and determining whether Kenya Airways can convert underlying demand into a more sustainable financial recovery.

Of Interest
- Kenya Airways increased first-half revenue by 9% to KShs 81 billion, despite operating with 9% less capacity than in the corresponding period in 2025.
- Cabin factor improved by four percentage points, supporting stronger revenue performance alongside resilient average coupon values.
- Fuel costs increased by 32% and accounted for approximately 32% of total operating expenses and 52% of direct operating costs.
- The airline recorded a KShs 16.1 billion loss after tax for the six months ended 30 June 2026, compared with a KShs 12.2 billion loss a year earlier.
- Fleet availability improved after the reporting period, with a Boeing 787-8 returning to service in mid-July and a Boeing 777-300ER also being redelivered to operations.
- Kenya Airways’ near-term priorities include restoring fleet capacity, reducing costs, preserving cash, strengthening liquidity and completing its planned capital raise.

Kenya Airways PLC reported revenue of KShs 81 billion for the six months ended 30 June 2026, an increase of 9% from the corresponding period last year, despite operating with 9% less capacity.

The airline attributed the revenue growth to stronger aircraft utilisation and commercial performance. Cabin factor improved by four percentage points, while average coupon values remained strong.

“We grew revenue by 9% to KShs 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, Ag. Group Managing Director and Chief Executive Officer.

Jet fuel prices rose sharply during the first half, driven principally by geopolitical tensions in the Middle East. Kenya Airways said its fuel costs increased by 32% compared with the same period last year. Fuel accounted for approximately 32% of total operating expenses and 52% of direct operating costs.

Persistent global supply-chain constraints also affected aircraft availability and operational reliability. The airline cited shortages of critical spare parts, extended lead times and delays in component availability.

Total operating costs rose by 14%, and Kenya Airways recorded a loss after tax of KShs 16.1 billion, compared with a KShs 12.2 billion loss in the corresponding period in 2025.

“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. These actions are designed to create a more stable platform from which the airline can pursue long-term growth,” said Kenya Airways Chairman Kiprono Kittony.

Fleet availability has improved since the end of the reporting period. 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.

Kenya Airways expects the restored capacity to strengthen network resilience, improve operational flexibility and enable the airline to capture additional demand as market conditions improve.

Its immediate priorities are to restore fleet availability while maintaining disciplined capacity deployment, accelerate cost-reduction initiatives while preserving cash and strengthening liquidity, improve operational resilience, reliability and aircraft utilisation, and complete the planned capital raising.

Kittony said the airline would continue to maintain a disciplined approach to capacity and expenditure while positioning itself to respond as market conditions improve.

“We remain confident in the long-term prospects of the airline and its role in connecting Africa to the world. 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.”

Editor’s Note

What to Watch

Fuel exposure. The size and persistence of the fuel-cost line will remain a major swing factor. Any future disclosure on fuel pricing, hedging or consumption would make the sensitivity easier to assess.

Fleet restoration. The Boeing 787-8 and Boeing 777-300 ER returns add capacity after the reporting period. The test is whether cabin factor and average coupon values hold as available seats and block hours recover.

Margins and cost conversion. The 8.4% EBITDAR margin and -13.1% operating margin show that stronger revenue has not yet translated into stronger operating profitability.

Capital and leverage. Negative equity widened during the first half, while liabilities increased. Progress on the planned capital raise and the stated leverage reduction will be central to the balance-sheet trajectory.

Cash generation. Operating cash flow improved, but investing and financing outflows exceeded it. The relationship between operating cash generation, financing requirements and closing cash deserves close attention.

Cargo. Cargo revenue increased 18% to KShs 8.768 billion. Its contribution will be worth tracking as the airline pursues its stated cargo growth ambitions.

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