Summary
- Kuwait Airways is facing Airbus aircraft delivery delays, leading them to explore leasing additional aircraft for 12 years to fulfill capability goals.
- The airline goals to expand its fleet to 50 aircraft by 2030 and double its destinations to 100 by 2025.
- Despite a net loss in 2022, Kuwait Airways has seen a 30% growth in passenger revenue in the primary half of 2023 and goals to return to profitability by 2025.
Kuwait Airways is trying to lease additional aircraft for a period of 12 years, in accordance with a report by Reuters. The news comes because the flag carrier Kuwait is reported to face some Airbus aircraft delivery delays.
Meeting capability goals
As Kuwait Airways continues to expand its route network, it encounters capability challenges, for which the airline needs more aircraft. As a part of its restructuring, the airline goals to hold 5.5 million passengers by 2025. And for that, the airline also needs more aircraft.
In February 2022, Kuwait Airways finalized its agreement with Airbus to amass 31 jets, estimated to be value $3 billion. The airline’s order book included nine Airbus A320neos, seven Airbus A330-900s, six Airbus A321neos, 4 Airbus A330-800s, three Airbus A321LRs, and two Airbus A350-900 widebodies. All jets were scheduled to be delivered by 2028.
Photo: Vytautas Kielaitis/Shutterstock
While 18 aircraft have already been delivered, there are indications that other deliveries will face a delay of 12 months. While discussing the problem with Airbus, the airline can also be exploring leasing six to eight aircraft, as mentioned within the report. Nonetheless, the aircraft type into account for the lease has yet to be indicated. In an interview, the airline’s chief executive Maen Razouqi told Reuters:
“We do not get into disagreements. The fact is that there are financial obligations that should be borne by the party liable for the delay. This is a component of our restructuring discussions- that the financial obligations ought to be based on payments or credits… offset for the delay.”
Growth ahead
Kuwait Airways is plotting some significant growth from its current fleet of airplanes. By 2030, the airline has set a goal to expand its fleet to 50 aircraft. Currently, Kuwait Airways has a complete of 32 aircraft in its fleet at a mean age of 5.6 years old, in accordance with Planespotters.net. The fleet comprises 15 A320s, seven A330s, and ten Boeing 777-300ER widebodies.
The airline’s extensive route network covers destinations in Europe, the Indian Sub-Continent, the Far East, North America, the Middle East, and Africa, currently serving 58 destinations. Nonetheless, Kuwait’s flag carrier has ambitious plans to double its destinations to 100 by 2025.
Photo: Airbus
Moreover, Kuwait Airways goals to return to profitability by 2025. After recording a net lack of $178 million in 2022, the airline has made significant progress, with a recent announcement revealing a 30% growth in passenger revenue throughout the first half of 2023. Within the statement, Razouqi said:
“Kuwait Airways has recently launched 13 latest destinations for the summer season, bringing the entire variety of destinations to 58 direct destinations and greater than 105 every day flights, along with 95 destinations via codeshare.”
The airline also goals to introduce six latest destinations within the winter season, including Washington DC, Barcelona, Taif, Athens, Izmir, and Shiraz.
Sources: Reuters, Planespotters.net