A computational model of a massless kite that produces power in an airborne wind energy (AWE) system is presented. AWE systems use tethered kites at high altitudes to extract energy from the wind and are being considered as an alternative to wind turbines since the kites can move in high-speed cross-wind motions over large swept areas to increase power production. In our model, the kite completes successive power-retraction cycles where the kite angle of attack is altered as required to vary the resultant aerodynamic forces on the kite. The flow field is found in a two-dimensional domain near the flexible kite by solving the full Navier–Stokes equations using an Eulerian grid together with a Lagrangian representation of the kite. The flow solver is a finite volume projection method using a non-uniform mesh on a staggered grid and corrector–predictor technique to ensure a second-order accuracy in time. The two-dimensional kite shape is modeled as a slightly cambered immersed boundary that moves with the flow. The flexible kite is modeled with a set of linear springs following Hooke’s law. The unstretched length of each elastic tether at a given time step is controlled using periodic triangular wave shapes to achieve the required power-retraction phases. A study was conducted in which the wave shape amplitude, frequency, and phase (between two tethers) were adjusted to achieve a suitably high net power output. The results are in good agreement with predictions for Loyd’s simple kite in two-dimensional motion. Aerodynamic coefficients for the kite, tether tensions, tether reel-out and reel-in speeds, and the vorticity fields in the kite wake are also determined.