A meeting of state shareholders Kuwait Airways approved an accounting measure to extinct 300 million dinars (983 million dollars) of losses accumulated through a reduction in capital, said the Official Gazette on Sunday.
Kuwait Airways has previously declared that he intends to reach the balance point in 2025, after years of accumulated losses. The airline did not reveal its financial results of 2023 and 2024.
The regional carriers, as well as their global competitors, were severely affected by the Covid-19 pandemics, but many gulf airlines saw a strong recovery in demand and have become central participants in multiple efforts of regional economic diversification in sectors such as tourism.
However, Kuwait Airways is struggling to achieve its strategic objectives, including the balance and increase in the passenger number due to delays in the deliveries of aircraft and geopolitical pressure in the region, said the president of the carrier in August.
The Official Gazette of the Kuwait said that the extraordinary general assembly, held on September 2, approved a reduction in the integrated capital of the company in 294 million dinars, to 683.7 million dinars and a cut in its legal reserve to 6 million dinars.
He also approved the airline issued by the airline in 300 million dinars, “to be saved according to a payment program determined by the Kuwait investment authority”, which has 100% of the company’s shares.
After the changes, the airline issued by the airline was set at 983.66 million dinars
The company did not respond to Reuters’ commentary request.
Source: Terra
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