KQ Loss Deepens to Ksh16 Billion Despite Higher Revenue

Kenya Airways (KQ) increased its revenue by 9 per cent in the first half of 2026, but the national carrier still recorded a wider net loss as operating costs rose faster than earnings.

The national carrier’s latest financial results show that its net loss after tax increased from Ksh12.15 billion in the first half of 2025 to Ksh16.08 billion for the period ending June 2026, representing an increase of nearly Ksh 4 billion.

According to the consolidated income statement, Kenya Airways spent Ksh 91.9 billion on operating costs during the six-month period, up from Ksh 80.7 billion a year earlier.

The loss came as the airline’s operating expenses continued to outpace income growth. The increase in expenditure pushed KQ’s operating loss to Ksh10.64 billion, compared to Ksh 6.24 billion recorded in the corresponding period last year.

Financial Report

The financial report indicates that while Kenya Airways generated more income during the period, the higher costs significantly eroded its performance.

Total income rose by 9 per cent to Ksh81.25 billion, compared to Ksh 74.5 billion in the first half of 2025.

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Cargo operations remained one of the airline’s stronger-performing segments, with cargo revenue increasing by 18 per cent to Ksh 8.77 billion.

However, the revenue growth was insufficient to overpower the rising operating expenses, leaving the airline with a weaker operating margin of negative 13.1 per cent, down from negative 8.4 per cent in the same period last year.

KQ’s Loss

The net margin also declined to negative 19.8 per cent, reflecting the increased pressure on the airline’s profitability.

The latest results underscore the continued financial challenges facing Kenya Airways as it balances growing demand for its services with escalating operating costs that continue to weigh on its bottom line.

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The results highlight the continued challenge facing the national airline as it seeks to strengthen its financial position despite growing passenger and cargo demand.

While higher revenue points to increased business activity, the faster rise in operating expenses meant the gains were not enough to prevent a deeper loss.

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A photo of Kenya Airways Plane. Photo/ Kenya Airways