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Kuwait Airways restructures its capital to write-off nearly $1 billion in losses

The official gazette reported that a shareholder meeting at Kuwait Airways, a state-owned airline, approved reducing the capital to erase 300 million dinars of losses accumulated over time.

Kuwait Airways has previously stated that it plans to break even by 2025, after years of losses. The airline hasn't disclosed its financial results from 2023 or 2024.

Regional carriers were also affected by the COVID-19 epidemic, as their global counterparts. However, many Gulf airlines are now a key player in regional efforts to diversify economies, particularly in tourism.

MEETING APPROVES CAPITAL REDUCTION

Kuwait Airways' chairman stated in August that the airline is having difficulty achieving its goals, such as breaking even and increasing the number of passengers, due to the geopolitical tensions in the region and delayed aircraft deliveries. Kuwait's official Gazette reported that the extraordinary general meeting, which was held on September 2nd, had approved a decrease in the carrier's capital paid up by 294 millions dinars. It also said it had reduced its legal reserve of 6 million dinars. The assembly also approved an increase in the airline's capital issued by 300 million dinars. This will be "called up" according to a schedule set by Kuwait Investment Authority, which owns all of the shares.

Gazette stated that the capital of the airline was 983.66 millions dinars after the changes.

The company has not responded to the request for comment.

(source: Reuters)