Kafco wins contract to supply Kuwait Airways at three international airports
A Strategic Leap to Expand Operational and Logistics Footprint Abroad
Najah Bilal
Kuwait Aviation Fuel Company (KAFICO) has achieved a strategic qualitative leap in expanding its operational and logistics scope beyond Kuwait’s borders. This regional expansion, according to a recent report by National Petroleum Company (NPC) for the fiscal year ended March 31, 2026, followed KAFICO’s active and successful participation in the tender issued by the Arab Air Carriers Association (AACO). The tender resulted in KAFICO’s official selection to provide aircraft fueling services for Kuwait Airways at three key international airports with active air traffic: Colombo Airport in Sri Lanka, Salalah Airport in the Sultanate of Oman, and Najaf Airport in the Republic of Iraq. Official service and on-site operations are set to commence at the beginning of the current fiscal year 2026/2027, marking a pivotal step toward strengthening the company’s presence in regional and international aviation energy markets.
On the domestic front, the company has continued to strengthen its strategic partnerships with government entities in the state. This includes signing a stable, three-year contract with the Amiri Diwan (Royal Court) to supply fuel for royal aircraft and state guest aircraft at Kuwait International Airport, reflecting high confidence in the company’s capabilities, efficiency, and reliability.
In a related development, official operational data and statistics demonstrated KAFICO’s exceptional field efficiency in meeting the growing domestic demand for aviation fuel. During the recent period, KAFICO completed fueling 50,856 commercial aircraft with Jet A-1 fuel at Kuwait International Airport, while military aircraft fueling operations with JP-8 fuel reached approximately 693 aircraft.
These integrated steps and sustained efforts underscore KAFICO’s success in reinforcing its position as a reliable logistics partner supporting the national carrier at its overseas stations, while maintaining the highest standards of quality, security, safety, and absolute operational efficiency at Kuwait International Airport, and achieving the long-term developmental goals of Kuwait’s oil sector. The report indicated that KAFICO’s operating expenses for the fiscal year ended March 31, 2026, reached 24,043,925 Kuwaiti dinars, compared to approximately 12,140,875 dinars in the previous fiscal year, representing a 98 percent increase. Conversely, the company’s aviation fuel sales volume declined to 895,203,467 liters, a decrease of 8.24 percent compared to the previous fiscal year.
NPC’s recent report for the 2025/2026 fiscal year noted that KAFICO’s net profit for the mentioned period fell to 1,859,657 dinars, compared to 19,647,857 dinars in the 2024/2025 fiscal year, a sharp decline of 17,788,289 dinars.
According to an analysis by an oil expert for Al-Siyasa, the significant decline in Kafco’s net profits is attributed to hostile attacks targeting its assets and main facility in March 2026. These events triggered several financial and operational impacts, including a 98% surge in company expenses to KWD 24,043,925, up from KWD 12,140,875 in the previous year, due to costs associated with managing the aftermath and rehabilitation efforts. Additionally, sales volumes declined, with jet fuel sales dropping by 8.24%, negatively affecting total operating revenues, compounded by global energy price volatility over the past year.
