In a loss that even makes Etihad Airways look “ok” in comparison, Kuwait Airways reported a very unprofitable fiscal year.
Kuwait Airways just reported is financials for the fiscal year that ended on December 31, 2018. It losses totaled KD131.9 million ($435MN). In other words, $17MN per aircraft, in just one year!
Kuwait Airways also reported its liabilities exceed its assets by KD208 million ($686MN). Losses were blamed primarily on rising fuel and maintenance costs, although employee costs also rose 11%. Overall, its operating loss was up 40% over a year earlier with the net loss up 25%.
Kuwait Airways a has a fleet of 27 jets, include:
- 10 Boeing 777-300ERs
- 5 Airbus A330-200s
- 12 Airbus A320 family
That’s two more than the 25 aircraft Kuwait Airways was operating in 2015 when it reported the massive loss.
And yet Kuwait Airways isn’t worried. Per Flight Global, the management “does not consider” these staggering losses a “material” concern. In fact, Kuwait Airways received a KD300 million ($989MN) infusion last year to finance aircraft acquisition. Its financial statement states:
“The company’s long-term financial plan envisages an increase in aircraft fleet, increased flight services to profitable sectors and cost optimization with an aim to improve revenue and operational profits.”
That sounds like Thai Airways…
I have yet to fly Kuwait Airways, but hope to do so in 2020. That said, I’m not sure how long this charade can continue. In the meantime, I’m waiting for outrage from Delta…
image: Anna Zvereva / Flickr CC 2.0