Kenya Airways increased its revenue by 9% to Sh81.25 billion in the six months to June 2026, but the stronger earnings were not enough to stop the national carrier’s losses from widening as rising fuel and operating costs continued to put pressure on its finances.
The latest revenue performance marks an improvement from the Sh74.5 billion recorded in the first half of 2025, despite the airline operating with 9% less capacity. Kenya Airways said better use of its available aircraft, improved commercial performance and steady passenger demand helped drive the increase in revenue, while its cabin factor improved by four percentage points.
“We grew revenue by 9% to Shs 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.
However, the increase in revenue came as the airline faced higher costs, resulting in a wider loss during the period.
Kenya Airways posted a loss after tax of Sh16.1 billion for the six months, up from the Sh12.2 billion loss recorded in the first half of 2025.
The airline said its financial performance was affected by a difficult operating environment, with total operating costs rising by 14% during the period.
Fuel remained one of the biggest sources of pressure on the carrier. Jet fuel costs increased by 32% compared with the first half of 2025, with fuel accounting for about 32% of Kenya Airways’ total operating expenses and 52% of its direct operating costs.
The airline also continued to face challenges linked to global supply-chain disruptions. Shortages of critical spare parts, longer waiting periods and delays in getting aircraft components affected the availability of its planes and disrupted operational reliability.
Despite the wider loss, the airline reported an improvement in cash generated from its normal operations.
Net cash generated from operating activities rose to Sh11.4 billion from Sh7.7 billion in the same period last year.
Cash and cash equivalents stood at Sh4.05 billion at the end of June, slightly lower than the Sh4.23 billion recorded a year earlier.
Kenya Airways’ financial position also remained under pressure, with total assets standing at Sh180.3 billion at the end of June, compared with Sh183.2 billion in December 2025.
At the same time, total liabilities increased to Sh328.2 billion from Sh315.3 billion over the same period.
Kenya Airways Chairman Kiprono Kittony said the airline would now concentrate on rebuilding its financial strength and improving its operations.
“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,” he said.
The airline has already begun increasing its available capacity as it works to restore more aircraft to service.
One Boeing 787-8 returned to service in July, while a Boeing 777-300ER was also redelivered to the carrier.
Kenya Airways said restoring fleet availability, cutting costs, strengthening operational reliability and completing its planned capital raising will remain key areas of focus as it works towards sustainable growth.