Kenya Airways Posts 9% Revenue Growth Amid Capacity Constraints

Kenya Airways has reported a 9% increase in revenue to KShs 81 billion for the six months ended 30 June 2026, despite operating with reduced capacity and facing higher costs across its operations.

The airline achieved the revenue growth despite a 9% reduction in capacity. Stronger aircraft utilisation and commercial performance helped improve cabin factor 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.

Resilient demand in a challenging operating environment

While revenue improved during the first half of 2026, Kenya Airways faced a difficult cost environment, with a sharp increase in jet fuel prices driven mainly by geopolitical tensions in the Middle East.

The airline's fuel costs rose 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 the airline's operations. Shortages of critical spare parts, longer lead times and delays in component availability affected aircraft availability and operational reliability.

These pressures contributed to a 14% increase in total operating costs, putting further pressure on the airline's margins.

Against this backdrop, Kenya Airways recorded a loss after tax of KShs 16.1 billion, compared with a loss of KShs 12.2 billion in the corresponding period last year.

“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,” noted Kiprono Kittony, Kenya Airways Chairman.

Fleet availability set to strengthen

Since the end of the reporting period, Kenya Airways has returned additional aircraft to service, providing a boost to its available capacity.

One Boeing 787-8 resumed operations in mid-July 2026, while a Boeing 777-300ER has also been redelivered and returned to Kenya Airways operations.

The additional aircraft are expected to strengthen the airline's network, improve operational flexibility and allow it to capture more demand as market conditions improve.

Building a stronger Kenya Airways

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 to provide a more sustainable financial foundation.

Looking ahead, the KQ Chairman said the national carrier would continue to take a disciplined approach to capacity and expenditure while positioning itself to respond quickly 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.”