Wataniya losses of more than $50million led to airline collapse - stock exchange told

The Kuwaiti carrier ceased operations amid a financial crisis this month, turned in losses of $50.8 million (KD14.1 million) for the full year 2010.

Those came on top of losses amounting to KD10.9 million, on revenues of KD22 million, in the previous year.

The airline,   used a fleet of Airbus A320s with just 122 seats, and had been competing with flag-carrier Kuwait Airways and budget operator Jazeera Airways.

Wataniya's stock value has steadily declined over the year. In March 2010 it was trading at around KD0.108 but the shares more than halved to KD0.051 by mid-March 2011, when the carrier stopped flying.

Jazeera’s chief executive Stefan Pitchler said last week that it had only been a question of time for Wataniya. “A business model with just 122 seats on a 320 doesn’t work,” he said. The budget carrier is planning to launch an Istanbul route following Wataniya's collapse.

According to Air Transport Intelligence the airline is also laying on extra frequencies to Dubai, Jeddah and Damascus.