Aviation

Kuwait Airways rules out profit for at least two years

March 18, 2025, 11:51 AM

Kuwait Airways chairman Abdulmohsen Alfagaan said the airline is cutting costs but improving service

Chairman issues warning
Airline to make spending cuts
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State-owned Kuwait Airways does not expect to turn a profit for at least another two years as it struggles to recover from losses built up during the Covid 19 pandemic, its chairman said.

Abdulmohsen Alfagaan told Kuwait’s daily Alseyassah that the airline is looking into what airplanes it needs and its network of destinations, anticipating a jump in operations.

Kuwait Airways operates 23 aircraft with a further seven being added by the end of the year, Alfagaan said, according to the paper.

The airline plans to cut spending and increase revenue from new services, the newspaper said, without giving details.

“As for making profits, it is difficult to reach a break-even point in 2025. Despite the improvement, the company will not reach a break-even point this year,” Alfagaan is quoted as saying.

“We need at least two years to talk about profitability. We hope that by the end of 2026 or the beginning of 2027, we can reach that point.”

The Gulf Arab aviation market is intensely competitive, dominated as it is by Dubai’s Emirates, Qatar Airways and Abu Dhabi’s Etihad Airways. Saudi Arabia is starting up another flag carrier, Riyadh Air, later this year, second to existing flag carrier Saudia.

“We have chalked out a strategy to increase the company’s revenues and cut spending in a way that will not hurt the quality of services. we have already started implementing this strategy and have noticed a steady improvement,” Alfagaan said.

Last year, Kuwait Airways reported a 16 percent increase in revenue to around KD335 million ($1.1 billion) compared with 2023, after it flew more flights and carried more passengers. Flights were up 26 percent to 32,839.

Kuwait accounts for less than 10 percent – or 4.8 million – of the Gulf Arab population of 60 million, the third smallest after Bahrain and Qatar.