Kuwait Airways reduces its losses to 50% in 2022

Kuwait Airways has held its Annual General Meetings (AGM) for the fiscal year ending on 31 December 2022.

Image: Kuwait Airways

During the AGM, the general assembly approved all the items on the agenda, including the financial and administrative reports, as well as the execution of certain liabilities of several government agencies that were challenging to collect for the previous fiscal years. 

Kuwait Airways Chairman, Captain Ali Al-Dukhan said: “The Board of Directors has been committed towards developing all the services provided to maintain the company’s distinction and enhance its competitive position in the region in particular, and in the field of aviation in general. The fiscal year ending in 31/12/2022 has been one of the most successful years for Kuwait Airways due to its achievement of the desired objectives, with the efforts of its employees and is progressing today with its strategic plans and improvements in the entire system.”

He added: “The positive figures and results confirm the progress of the national carrier at a steady pace towards development and excellence. This is in addition to a significant leap in the technical, professional, and administrative fields, applying innovative work methods, as well as investing in the human element, and creating an attractive environment for professional competencies. This has been done by taking into account the significance of applying the latest technologies and applications to achieve strategic objectives and profitability, which has reflected in reducing the company’s losses to 50% from 107 million Kuwaiti Dinars at the end of 2019 to 55 million Kuwaiti Dinars in 2022.

“Kuwait Airways has completed many achievements in the previous period, the most prominent of which was the agreement with Airbus to restructure the fleet and to increase the fleet from 28 to 31 aircraft, part of which the company has received, and the remaining will be received in the coming years. It was also agreed to limit the types of aircraft, which would help in facilitating the movement of operations for pilots, engineers, and flight crew and save training expenses. In addition, the agreement will achieve an increase in passenger seat capacity and financial saving compared to the market value of approximately 173 million dollars. Furthermore, the MTOW feature was added for the aircraft to carry additional weight, and the agreement is the beginning of the phase of increasing the narrow body aircraft over the wide body, thereby increasing the flexibility of movement and deployment.”

Al-Dukhan added: “Kuwait Airways achieved highly positive results than was expected in 2022, as total passenger revenues reached 289.1 million dinars, showing an increase of 11%, while the number of passengers reached 3.5 million, which is an increase of 2%. Kuwait Airways operated approximately 25.5 thousand flights, marking an increase of 5% with the percentage of occupied seats reaching 69.7%, which is an increase of 2%.”

Al-Dukhan pointed out that Kuwait Airways had included among its plans in 2022 to expand its network routes around the world and launch new destinations. The company operated 10 new routes such as Madrid, Manchester, Mykonos, Sarajevo, Izmir, Salalah, Hyderabad, Kathmandu, Kuala Lumpur, and Casablanca. In addition, Kuwait Airways played a prominent role in allocating daily flights to carry fans to the World Cup. 

Al-Dukhan indicated that at the level of signing agreement and contracts, the company contracted with the Ministry of Finance – State Property Contracts Department regarding the previous Kuwait Airways’ land lease on Abdulaziz Al-Saqer Street (Al-Hilali Street) and appointed a consulting office to design a commercial building. Kuwait Airways also signed an agreement to establish the Elite Lounge for Royal and First Class passengers and Platinum card holders of the Oasis Club, develop the Mubarakiya Lounge at Terminal 4 and approved the transfer of ownership of the Airport Excellence Services Company to Kuwait Airways, which enables the company to assist its passengers by providing premium services.

Al-Dukhan said: “Kuwait Airways has extended the contract for the lease of 7 – A320 aircraft up to the year 2024 which increases the number of flights, operations to new destinations and meets the requirements of valued customers. Moreover, the company signed codeshare agreements with SriLankan Airlines and Air Europa, in addition to developing agreements with ITA Airways as well as Turkish Airlines.

“Kuwait Airways is keen to develop and improve the services of its valued customers, through the launch of the Platinum Card, which is the highest category of the Oasis Club, in addition to developing and improving the various menus for the year 2023 provided on board, and in the various lounges at the airport.

Among the company’s achievements in 2022 and based on the plans developed by the Board of Directors, Kuwait Airways jumped 103 places from 179th rank for the year 2021 to 76th rank in 2022 among the top 100 airlines, according to the evaluation by Skytrax which specialises in the evaluation of airlines. The company also obtained the ATO training system accreditation certificate after completing and complying with the requirements and standards of the air transport sector, as well as meeting the conditions required to obtain the certificate.

Al-Dukhan also indicated that Kuwait Airways had implemented the structuring of the company in line with its vision, by modifying the structure of the departments and sections, in line with the optimal operating plan to achieve profit and reduce costs.