Kuwait Airways has approved a capital reduction of 300 million dinars ($983 million) to extinguish accumulated losses, according to the official gazette. This move comes as the airline faces difficulties in achieving its strategic targets due to delayed aircraft deliveries and geopolitical pressure.
The carrier’s chairman previously stated that Kuwait Airways is struggling to break even and increase passenger numbers. However, many Gulf airlines have seen a strong rebound in demand since the COVID-19 pandemic.
Kuwait Airways’ capital reduction includes:
* A reduction of paid-up capital by 294 million dinars
* A cut in its legal reserve by 6 million dinars
* An increase in issued capital by 300 million dinars
The airline’s new issued capital is set at 983.66 million dinars, according to the gazette. Kuwait Airways has not commented on the changes.
Kuwait Airways aims to break even by 2025 but has not disclosed its financial results for 2023 and 2024. The airline is facing challenges in achieving its targets due to various factors.
Source: https://www.reuters.com/world/middle-east/kuwait-airways-restructures-capital-write-off-nearly-1-bln-losses-2025-09-28