Kuwait: Kuwait Airways is pushing ahead with plans to develop the national carrier and strengthen its position among the leading airlines in the Gulf, despite ongoing challenges related to aircraft delivery delays and regional geopolitical tensions.

Abdulmohsen Al-Fagaan, Chairman of Kuwait Airways’ Board, said the company expects to receive a new Airbus A321neo by the end of this month, along with two Airbus A330-900neos before the end of the year. This will bring the carrier's fleet to 30 aircraft by the end of 2025, up from 27 aircraft currently in operation.

“We have a clear strategic plan, and we are already starting to see positive results,” Al-Fagaan said following the company’s fully attended annual general assembly on Monday. He highlighted steady improvements in service quality and several partnerships with companies such as Saudi Railways, Saudi Airlines, and Amadeus, a leading provider of aviation technology and innovation solutions.

However, Kuwait Airways is encountering difficulties in achieving its strategic goals, including increasing passenger numbers from over four million in 2024 to 5.5 million by 2025, said Al-Fagaan. The airline had also previously aimed to break even by 2025 following several years of accumulated losses. But delays in plane deliveries, combined with geopolitical tensions affecting some destination countries, have hindered progress toward this target. “The delay in deliveries is not unique to Kuwait Airways; many airlines worldwide are facing the same problem,” Al-Fagaan said during a press conference following the company’s annual general meeting.

The airline has also had to adjust its fleet size due to these delays and the return of leased planes, at one point operating only 23 aircraft. Such reductions inevitably affect passenger volumes and financial performance, said Al-Fagaan. The company’s growth plans had anticipated a fleet of 33 aircraft by 2024.

Regarding compensation for delays, Kuwait Airways has received Airbus payments in the form of credits rather than cash. These credits, which amount to millions, can be used for spare parts, training, and other services.

“They have been paid—it’s not cash, but credit,” Al-Fagaan explained. “You use it to buy spare parts, training, or other things. It’s a good amount of money.”

The company did not disclose its 2024 financial results during the briefing.

Al-Fagaan emphasized the board’s commitment to addressing all observations and requests from the State Audit Bureau, reducing the number of outstanding financial violations from 16 to seven currently under investigation.

Kuwait Airways has faced a series of financial and administrative violations in the past. A notable case involved an absorption contract with Kuwait Aviation Services Company (KASCO), which raised concerns about financial oversight and was later corrected after official intervention. The carrier cancelled the contract in 2024.

The airline had also acknowledged irregularities related to expenses for its 65th anniversary celebration, including inflated costs and unsupported sponsorship claims.