Kuwait, August 13 - Kuwait Airways, the state-owned carrier of Kuwait, is grappling with significant challenges that threaten its strategic goals, according to Chairman Abdulmohsen Alfagaan. The airline is facing delays in aircraft deliveries from Airbus, which have disrupted its plans to expand its fleet and increase passenger numbers. The carrier had anticipated operating 33 aircraft in 2024 to support its target of transporting 5.5 million passengers by 2025, up from over 4 million the previous year. However, supply chain bottlenecks, including shortages of parts and labor since the pandemic, have left Kuwait Airways with only 27 jets currently, with expectations to reach 30 by the end of 2025 and the remaining deliveries not due until 2027. These delays have forced the airline to scale back its operations, return leased planes, and adjust its route network, significantly impacting its growth trajectory. At one point, the fleet dwindled to just 23 aircraft, far below the planned figure, hampering the airline’s ability to meet rising demand and maintain competitive service levels.
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Compounding the issue of delayed deliveries is the broader context of regional instability, which Alfagaan highlighted as a critical factor affecting the airline’s performance. Geopolitical tensions in the Middle East, including conflicts and political challenges in countries served by Kuwait Airways, have disrupted the region’s aviation industry. These issues have led to reduced demand on certain routes, with some destinations experiencing up to a 50% drop in passenger numbers due to fears of escalating conflicts, such as the Israel-Hamas war. This has prompted cancellations and reduced frequencies, particularly on Middle Eastern and Turkish routes, while European routes remain relatively strong with near-capacity loads. The combination of these external pressures and delivery delays has delayed Kuwait Airways’ goal of breaking even by 2025, a target that was central to its financial strategy. The airline’s leadership is now navigating a complex environment where external factors beyond its control are undermining its operational and financial objectives.
In response to the delivery delays, Kuwait Airways is actively seeking compensation from Airbus, as Alfagaan revealed during discussions at the Dubai Airshow 2023. The delays have forced the airline to reschedule flights and adjust its network, incurring operational costs and lost opportunities. The carrier is awaiting nine aircraft, including seven Airbus A330-900neos, two A350-900s, nine A321neos, and one A320neo. These delays are part of a broader industry challenge, as aerospace manufacturers struggle with post-pandemic supply chain issues, prompting airlines worldwide to demand penalties. Airbus has remained tight-lipped, stating that customer discussions are confidential, but the pressure on manufacturers to address these delays is mounting. For Kuwait Airways, the lack of new aircraft has not only constrained its ability to expand but also limited its capacity to compete with regional giants like Emirates, Qatar Airways, and Etihad Airways, which benefit from larger fleets and more robust infrastructure.
Despite these challenges, Kuwait Airways is striving to maintain its commitment to customer service and operational development. Alfagaan emphasized the airline’s intent to offer top-tier services and innovative solutions to meet passenger demands, even as it operates with a constrained fleet. The current fleet includes eight A320s, eight A320neos, five A330-200s, four A330-800neos, and ten Boeing 777-300ERs, with an average age that remains relatively young. However, the airline’s inability to reach its planned fleet size has financial implications, including potential market share losses to competitors with greater capacity. Additionally, Kuwait’s aviation sector faces broader systemic issues, such as outdated infrastructure and regulatory inefficiencies, which exacerbate the airline’s challenges. The stalled Terminal 2 project at Kuwait International Airport and the withdrawal of 14 international carriers, including British Airways, Lufthansa, and KLM, underscore the country’s struggle to remain competitive in the Gulf’s aviation landscape. Kuwait Airways’ leadership is now tasked with managing these multifaceted issues while striving to align its operations with long-term growth objectives.