Kuwait Airways to Lease 8 Airbus A321 Aircraft Over 10 Years Amid Delivery Delays

Kuwait Airways has decided to lease eight Airbus A321neo aircraft over the next decade due to delivery delays affecting its current orders. The carrier’s expansion plans have been threatened by reported delays from Airbus, prompting the airline to secure leased aircraft to avoid disruptions to its operations.

The move to lease aircraft follows Kuwait Airways’ efforts to counter capacity constraints and ensure the continuity of its growth strategy. Ali Aldokhan, Chairperson of Kuwait Airways, confirmed the decision during a press conference. The leased A321neos are expected to alleviate concerns arising from the Airbus delivery delays and prevent setbacks to the carrier’s expansion agenda.

Presently, Kuwait Airways operates a fleet of 35 active aircraft. In 2022, the airline placed an order for 31 Airbus jets worth over $3 billion, scheduled for delivery by 2028. While 18 aircraft from the order have already been delivered, the remaining deliveries face a 12-month delay attributed to Airbus. This order comprises various Airbus models, including 6 A321neos, 3 A321XLRs, 7 A330neos, and 2 A350-900s.

Kuwait Airways is currently evaluating leasing proposals from different aircraft leasing companies as it seeks to secure the best possible terms for its requirements.

To address increasing operational costs, Kuwait Airways is in discussions with Kuwait Petroleum Corporation to negotiate a potential discount on jet fuel. The airline has experienced a notable rise in jet fuel costs recently, impacting its operating expenses. Leasing fuel-efficient A321neos will contribute to lowering fuel costs while expanding capacity.

Despite facing challenges, Kuwait Airways remains on a path of steady growth, backed by ambitious plans to acquire 50 aircraft by 2030. The airline is a key element of Kuwait’s strategy to boost its tourism industry, supporting this goal through network expansion. Although the airline reported a net loss of $178 million in 2022, it is targeting a return to profitability by 2025.

Sources: AirGuide Business airguide.info, msn.com, reuters.com