KUWAIT CITY, Sept 29: Kuwait Airways’ shareholders approved a capital restructuring move to wipe out 300 million Kuwaiti dinars (approximately $983 million) of accumulated losses, according to a report published in Kuwait’s official gazette on Sunday.

The extraordinary general assembly, held on September 2, authorized a reduction of the airline’s paid-up capital by 294 million dinars, bringing it down to 683.7 million dinars. The legal reserve was also cut by 6 million dinars. Additionally, shareholders approved an increase in the airline’s issued capital by 300 million dinars, with payments to be scheduled by the Kuwait Investment Authority, which wholly owns Kuwait Airways.

Following these adjustments, the carrier’s issued capital now stands at 983.66 million dinars, the gazette added.

Kuwait Airways had previously signaled its goal to break even in 2025 after years of cumulative losses, though it has yet to release financial results for 2023 and 2024.

Like many regional and global carriers, Kuwait Airways faced significant setbacks due to the COVID-19 pandemic. While many Gulf airlines have rebounded strongly and become key contributors to regional economic diversification, Kuwait Airways continues to grapple with challenges. Delays in aircraft deliveries and geopolitical tensions in the region have hampered its ability to meet strategic targets, including profitability and passenger growth, the airline’s chairman said in August.