Gulf Air posts KWD 8.6 million profit in the first half
Kuwait Airways announced today its financial results for the first half of 2026, recording net profits of 8.6 million Kuwaiti dinars, a 10.3% decline on a year-on-year basis. This decrease was driven by a significant rise in fuel prices and reduced operational capacity, which limited the positive impact of improved yield per seat during one of the most challenging periods in the company’s history.
Throughout most of the first half of the year, Kuwait Airways faced exceptional challenges, including the temporary closure of Kuwait International Airport starting February 28. This was followed by ongoing operational restrictions that significantly impacted the company’s flight network and constrained its operational capacity for much of the period.
Following the closure, the company launched the “Barakah Initiative” to ensure Kuwait remained connected to the world by operating alternative flights via the Kingdom of Saudi Arabia, before resuming full operations from Terminal 5 on May 3.
Despite these operational challenges, operating revenues rose by 13.4% year-on-year to reach 115.8 million dinars, driven by sustained strong travel demand, commercial performance efficiency, and a robust recovery in passenger traffic upon the resumption of operations.
High demand during the holiday and Hajj seasons in the second quarter contributed to increased passenger numbers and improved flight yields, reflecting the resilience of the company’s business model despite ongoing operational restrictions.
During the first half of the year, Kuwait Airways operated 11,106 flights, offered 1.9 million seats, and transported 1.5 million passengers, achieving a seat load factor of 79.1% while maintaining a market share of 35.9%.
The company’s operational flexibility and commercial efficiency were also reflected in its second-quarter results, with group operating revenues increasing by 45.5% to 70.7 million dinars, supported by strong travel demand.
In the second quarter of 2026, the company continued operations under limited hours at Kuwait International Airport, with transit flights suspended, alongside intermittent airport and airspace closures that affected operational efficiency and capacity. Kuwait Airways recorded net profit after tax of 9.6 million Kuwaiti dinars in the second quarter, demonstrating its ability to deliver strong performance despite exceptional operational conditions.
Marwan Boudi, Chairman of the Board of Kuwait Airways, stated: “The first half of 2026 was one of the most challenging periods in Kuwait Airways’ history. The temporary closure of Kuwait International Airport imposed unprecedented operational challenges; however, it also demonstrated the resilience of our business model, the efficiency of our teams, and our ability to respond swiftly to maintain operational continuity.”
Boudi added: “Although profitability was affected by rising fuel prices and reduced operational capacity, we achieved a 13.4% growth in revenues, supported by sustained travel demand and our commercial efficiency. Through the ‘Barakah Initiative,’ we succeeded in maintaining Kuwait’s connection to the world during this exceptional period, while laying the groundwork for continued operational resilience in the second half of the year.”
He concluded: “Kuwait Airways continues to implement its long-term strategy amid constrained operational conditions, focusing on investing in the expansion of its destination network, enhancing the customer experience, developing human capital, maintaining financial discipline, and concentrating on delivering sustainable value to our shareholders.”
Gulf Air has demonstrated its ability to navigate one of the most challenging periods the aviation sector in Kuwait has witnessed, becoming the first airline to resume operations following the closure of Kuwait International Airport by launching the “Barakah Initiative” on March 11.
The company adopted an alternative operational model based in the Kingdom of Saudi Arabia, maintaining connections between Kuwait and its key destinations. It relocated 14 aircraft and more than 500 employees to Saudi Arabia to coordinate over 9,000 cross-border bus transfers, ensuring passengers reached their onward flights. During this period, Gulf Air transported over 200,000 passengers across more than 1,500 flights.
Temporary operational hubs established at airports in Qaisumah, Dammam, Jeddah, and Medina in Saudi Arabia, as well as in Cairo, supported Hajj operations and accelerated the restoration of services from Kuwait, further strengthening the company’s market position.
Gulf Air continues to execute its long-term strategy despite ongoing operational challenges and market uncertainty. While travel demand remains below historical levels and some operational restrictions persist, the company is focused on expanding its route network, enhancing commercial partnerships, investing in digital transformation, and achieving operational excellence, thereby ensuring sustained value for customers and shareholders.
Thanks to its flexible low-cost business model and disciplined cost management, Gulf Air holds a strong position that enables it to capitalize on recovery opportunities as market conditions improve.
