Kuwait Airways becomes wholly state-owned shareholding company

Dubai: Kuwait Airways has been transformed into a wholly state-owned shareholding company under a new decree law aimed at strengthening the national carrier's governance, operational flexibility and long-term growth strategy.

Chairman Abdulmohsen Salem Al Fagaan said the move follows the issuance of Decree Law No. 77 of 2026, bringing the airline under the framework of the Companies Law and providing a modern legal structure to support its future development.

He said the transformation reflects the state's commitment to modernizing Kuwait Airways amid rapid changes in the global aviation industry and will enhance the airline's governance, strategic planning and institutional performance.

Al Fagaan said the broader powers granted under the new structure would streamline decision-making, improve administrative and operational flexibility, accelerate project implementation and enable the airline to respond more quickly to market developments. The framework will also support future plans to acquire or lease aircraft and expand its route network, subject to technical and economic feasibility studies.

He said the new corporate model would strengthen resource management, align the airline with international corporate governance practices and improve its competitiveness in an increasingly challenging regional aviation market.

Addressing the airline's accumulated losses, Al Fagaan said their reduction would depend on operational improvements as well as external factors including travel demand, fuel prices and global economic conditions. He said the institutional transformation would take time but would support more efficient decision-making, sustainable growth and stronger operational performance.

Al Fagaan said achieving the airline's ambition of becoming a leading global carrier would also require continued fleet modernization, service improvements, network expansion, investment in national talent and digital transformation, adding that competitiveness in the aviation sector depends not only on fleet size but also on passenger experience, operational efficiency and the ability to adapt to industry developments.