The state-owned carrier, which has posted back-to-back losses over the years, hopes to alter a major deal to buy planes it announced in 2022 with Airbus from its current trajectory and bring it to profit in 2025 and to expand to reach new destinations.
The company posted a net loss of 55 million dinars ($180.26 million) in 2022, compared to losses of 107 million dinars ($349.3 million) in 2019.
“Conditions are constantly improving, demand is very high and the challenge is how to meet current market demands,” said Issa Al-Haddad, Deputy Director of Operations at Kuwait Airways.
He added: “Our policy is to improve revenue and reduce expenses to break even. I’m very optimistic and hope for better results in the next stage,” according to Reuters.
Al-Haddad said that the significant impact of oil prices on the business occurred when the price per barrel of oil reached $120, but has now fallen to around $75, as the company policy is to reduce the cost of fuel as much as possible. possible.
The company’s revenue was up 115% last year from 2021 and up 10% from 2019, before the pandemic hit airlines.
And Kuwait Airways announced in 2022 that it had increased the volume of a previous Airbus order from 28 aircraft to 31 aircraft in a deal worth three billion dollars.
The new order included the purchase of nine Airbus A320neo, six A321neo, three A321neo LR, four A330-800neo and seven A330-900neo and two A350-900.
The amendment came at the time to give the company more flexibility by increasing the number of narrow-body aircraft, in addition to saving around $200 million.
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