The carrier achieved a 61% reduction in its full year losses for the year, ending on 31 March 2007 and has accomplished figures of KWD9.2 million compared to KWD23.8 million, 12 months ago.

Chairman and Managing Director Sheikh Talal Mubarak Abdullah Al-Ahmad Al-Sabah said that the significant turnaround of the Corporation’s financial fortune was achieved through both, revenue growth, as well as cost reduction. Total revenues rose to KWD256.6 million and more than 2.5 million passengers flew with the national carrier during the year.

With seat load factor at 71% and average revenue per passenger at KWD76, the Corporation achieved improvement on both passenger volume and yield, despite increased competition from local start-up and airlines who had been taking advantage of Kuwait’s Open Skies policy.

Sheikh Talal mentioned that on the cost reduction front, Kuwait Airways adopted a strategy to reduce its operating cost and to return to profits by March 2008, which was well on track. Despite the record high cost of fuel, the Corporation was able to reduce its total expenses by KWD8.4 million to KWD265.8 million. According to Sheikh Talal, the reduction in operating cost was remarkable considering the increase in passenger volume and aircraft activities.

Sheikh Talal also affirmed that the combination of better services and cost reductions had enabled the Corporation to confidently budget for a profit in 2007/2008 after many years of losses.

Date posted: 13-Jun-07