A shareholder meeting of state-owned Kuwait Airways approved an accounting move to extinguish 300 million dinars ($983 million) of accumulated losses via a capital reduction, the official gazette reported on Sunday.
Kuwait Airways previously said it aims to break even in 2025 after years of accumulated losses. The airline has not disclosed its financial results for 2023 and 2024.
Regional carriers, like their global peers, were hit hard by the COVID-19 pandemic, but many Gulf airlines have since seen a strong rebound in demand and have become central players in broader regional economic diversification efforts, in areas such as tourism.
MEETING APPROVES CAPITAL REDUCTION
Yet Kuwait Airways is facing difficulties in achieving its strategic targets, including breaking even and increasing passenger numbers, due to delayed aircraft deliveries and geopolitical pressure in the region, the carrier’s chairman said in August.
Kuwait's official gazette said the extraordinary general assembly, held on September 2, had approved a reduction of the carrier's paid-up capital by 294 million dinars to 683.7 million dinars and a cut in its legal reserve by 6 million dinars.
It also approved increasing the airline’s issued capital by 300 million dinars, "to be called up according to a payment schedule determined by the Kuwait Investment Authority", which owns 100% of the company's shares.
Following the changes, the airline’s issued capital was set at 983.66 million dinars, the Gazette said.
Following the changes, the airline’s issued capital was set at 983.66 million dinars, the Gazette said.
The company did not respond to Reuters’ request for comment.
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