Kuwait Airways restructuring gained major approval after shareholders voted to erase $983 million in accumulated losses. The airline takes this step to restore financial stability and accelerate recovery.
The extraordinary general assembly, held on September 2 in Kuwait City, reduced the airline’s paid-up capital by 294 million Kuwaiti dinars. This adjustment lowered it to 683.7 million dinars. In addition, shareholders decreased the legal reserve by six million dinars. They also approved a capital increase of 300 million dinars, funded by the Kuwait Investment Authority. As a result, the airline’s issued capital now totals 983.66 million dinars.
Kuwait Airways restructuring reflects the airline’s determination to overcome years of cumulative losses. The company previously aimed to achieve breakeven by 2025, although results for 2023 and 2024 remain unpublished.
Like other global carriers, Kuwait Airways faced severe setbacks during the COVID-19 pandemic. While some Gulf airlines quickly rebounded and contributed to economic growth, Kuwait Airways continues tackling operational and financial challenges. Delayed aircraft deliveries and regional geopolitical tensions further hinder the airline’s ability to meet strategic goals, including profitability and passenger growth, said the chairman.
Experts note that Kuwait Airways restructuring will restore investor confidence. By eliminating historic losses, the airline strengthens its balance sheet and gains access to capital for fleet upgrades and network expansion. This foundation allows the carrier to compete effectively in the regional aviation market.
The airline plans several operational improvements alongside the restructuring. It will optimize routes, enhance customer service, and improve digital booking platforms. Analysts suggest these measures, combined with the restructuring, could help the airline reach breakeven and sustain growth.
Kuwait Airways restructuring shows decisive leadership in stabilizing the company. Strengthened capital and clear strategic planning will allow the airline to navigate challenges and support Kuwait’s aviation sector.
Ultimately, Kuwait Airways restructuring will boost investor confidence, improve operational efficiency, and foster long-term growth. The airline now has a stronger path toward financial recovery and regional competitiveness.
