Kuwait Airways restructures capital to trim losses: State-owned Kuwait Airways’ shareholders have greenlit the cancellation of KWD 300 mn (c. USD 983 mn) of accumulated losses by way of a capital restructuring, Reuters reports, citing Kuwait’s official gazette.

The details: The airline approved a reduction in its paid-up capital by KWD 294 mn to KWD 683.7 mn and a reduction in its reserves by KWD 6 mn. Kuwait Airways also approved raising its issued capital by KWD 300 mn, with the move materializing according to an issuance schedule set by the Kuwait Investment Authority, which owns 100% of the flagship carrier.

SOUND SMART- A capital reduction is a technical accounting process where a company’s shares are slashed through share buybacks or cancellations, either to eliminate losses or to increase distributable reserves, according to UK-based accounting and advisory firm Gerald Edelman. It is important to note that no physical transfer ofliquid assetsoccurs ; instead, balance sheet reserves are used to offset losses and generate distributable income.

Headwinds: Kuwait Airways has struggled to recover from the pandemic-era financial challenges that hit most of the aviation industry. The flag carrier has also fallen behind on its 2025 goals to expand operations and balance its financials, due to aircraft delivery delays and geopolitical tensions, the airline’s chairman said earlier this year. Kuwait Airways initially planned to expand its fleet to 33 jets by 2024, but industry-wide supply chain disruptions delayed most deliveries — leaving it with a 27-aircraft fleet as of 2025.

That said, Kuwait Airways has seen its operational revenues increase 6% q-o-q to USD 324 mn in 2Q 2025, according to a statement. The airline also posted a 9% q-o-q increase in passengers to more than 1 mn passengers over the same period. The airline did not release financial results for the years 2023 and 2024.

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