Kuwait's national carrier Kuwait Airways plans to lease a total of eight Airbus passenger jets over the next ten years, according to company Chairman Ali Aldokhan.
Reuters reported that Aldokhan revealed this information during a Sunday press conference, stating that the state-owned airline is currently evaluating leasing offers from various companies for Airbus A321neo aircraft. The leases for these eight planes will span eight to ten years.
This leasing plan comes in addition to Kuwait Airways' major 2022 agreement with Airbus worth billions to purchase 31 planes, of which 18 have already been delivered.
Despite the severe impact of COVID-19 on airlines globally, many Gulf carriers have seen a rapid rebound in demand. They are playing key roles in their governments' efforts to diversify economies, especially through sectors like tourism.
Aldokhan also noted fuel costs have risen 38% annually for Kuwait Airways since early 2023. In the same press conference, CEO Maen Razzouqi said the company is discussing ways to reduce fuel costs with the Kuwait Petroleum Corporation.
In February 2022, Kuwait Airways signed an upgraded $6 billion deal with Airbus for 31 new planes, revising a 2014 agreement. The order of nine A320neos, six A321neos, three A321neo LRs, four A330-800neos, seven A330-900neos, and two A350-900s came after 'heated' talks amid probes over kickback allegations from their original 2014 order.
Aldokhan said at the time he was initially skeptical of Airbus but they reached a "monumental restructuring that will position Kuwait Airways for success over the next 15 years."
Kuwait Airways bought 15 Airbus 320neos and 10 Airbus 350s in 2014, with deliveries starting in 2019.
The airline's profit for the first half of 2023 was $21 million, down 15.1% from $24 million the prior year. Kuwait Airways expects to break even by end of 2024, ending annual losses around $193 million. In 2019 it lost $345 million.
