Kenya Airways losses surge to Ksh.16.1B up from Ksh.12.2B

The first half of the year has rocked the national carrier Kenya Airways, with the airline diving further into losses at the end of June 2026.

The airline posted a Ksh.16.1 billion net loss, an increase from the Ksh.12.2 billion loss recorded in the first half of 2025.

On the operation front, the airline recorded an operating loss of Ksh.10.6 billion, up from the Ksh.6.2 billion operating loss recorded in the previous year.

In the same period under review, the airline saw its assets depreciate from Ksh.183 billion in the first half of 2025 to Ksh.180 billion in the first half of 2026. The airline blames the performance on geopolitics, high fuel cost and declined capacity.

Kenya Airways Board Chair Kiprono Kittony said: “Collectively, these factors have sustained pressure on margins and the overall network profitability. Consequently, total operating cost during the period increased by 14 per cent based on the above revenue and the cost dynamics the group reported a loss of Kenyan shillings Ksh.16.1 billion compared to a loss of Ksh.12.2 billion reported for the prior period.”

“Our load factor remained resilient when capacity was available. The decline in passenger number broadly tracks the capacity we lost. So what we have experienced largely is unserved demand, not an absence of demand, but we are not presenting the external environment as an excuse,” Kenya Airways Acting Group CEO George Kamal added.

At the same time, the airline continues to contend with an over-leveraged balance sheet, with the management hinting at continued support from government to enable the airline to facilitate trade in the country, further growing the airline's debt owed to the government. The airline is further considering a conversion of the debt to equity to lessen the burden­­­.­

Kittony stated: “In the meantime, we have been able to receive secure financial support from our shareholders and our principal shareholder, as you know, is the government of Kenya and we have received good support from them, and it's agreed the importance of the airline.”

Mary Mwenga, Acting Chief Financial Officer (CFO), added: “Our current debt portfolio is about Ksh.152 billion; 90 percent of that debt is with the government of Kenya, our biggest shareholder.”

In the same period under review, the airline saw some positives with revenue increasing by 9 per cent to ksh.81.3 billion up from Ksh.74.5 billion recorded previously and­­­ the second highest to be recorded over the last 7 years.

Cargo revenue, on the other hand, posted an 18 per cent growth to close the half year at Ksh.8.8 billion up from Ksh.7.5 billion previously. Cabin factor points were up 3.9 points at 76.3 per cent.

Despite KQ posting a 9 per cent growth in revenue to Ksh.81 billion; Ksh.29 billion went to the cost of fuel, costing the airline its profitability, but the airline remains optimistic that things will turn around.