Kuwait’s aviation industry loses altitude as foreign airlines exit

May 6, 2025, 3:32 PM

Passenger numbers have fallen at Kuwait International, but are soaring at airports elsewhere in the Gulf — Passenger numbers have fallen at Kuwait International, but are soaring at other Gulf airports

British Airways stops daily service
Passenger traffic down 1% at KWI
Gulf rivals report healthy growth

Kuwait’s ambitions for its aviation industry are faltering as a growing number of international carriers quit the market and airport upgrades are delayed.

British Airways ceased its daily service from London in March, ending more than 60 years of operations. This follows withdrawals from Kuwait International Airport (KWI) by at least 14 other airlines since 2019, including Germany’s Lufthansa and the Netherlands’ KLM.

“Kuwait lacks a clear vision of what it wants its aviation sector to achieve: hub ambition, tourism gateway or domestic enabler?” says Linus Bauer, managing director of aviation consultancy BAA & Partners.

Passenger traffic at KWI dropped by 1 percent last year to 15.4 million, in stark contrast to the performance of other Gulf airports.

Dubai International is now the world’s second-busiest airport (behind Atlanta), with passenger numbers rising by nearly 6 percent to 92 million last year. Traffic at Doha’s Hamad International was up 15 percent to 53 million and Riyadh reported an 18 percent rise to about 38 million.

“Route permissions, bilateral approvals and airport slot allocations are slow and unpredictable,” Bauer says.

“Regional peers like Saudi Arabia and the UAE have leapfrogged Kuwait by liberalising and modernising policy frameworks.”

Population and airline development also have a role to play. Saudi Arabia and the UAE have much larger populations than Kuwait. The UAE and Qatar also have Emirates, Etihad and Qatar Airways – flag carriers that have become aviation giants. Their airport development has followed suit.

In 2023 the Kuwaiti government earmarked nearly $3 billion for 20 infrastructure projects including the expansion of KWI. The centrepiece of that strategy is the airport’s new Terminal 2, designed to handle up to 50 million passengers a year.

The terminal was initially due to open in 2022, but this has now been pushed back to the final quarter of next year.

Last month Turkish operator TAV Airports disclosed that the operation and maintenance tender for T2 had been cancelled by Kuwait’s Directorate General of Civil Aviation – another setback in the country’s efforts to modernise aviation infrastructure.

Jazeera Airways, a privately operated low-cost carrier based at KWI, opted to sidestep the bureaucracy by building its own terminal at the airport in 2018.

Its decision “to avoid public sector delays underscores the dysfunction of national infrastructure planning”, says Bauer.

Instability has also surfaced at Kuwait’s national carrier.

Kuwait Airways CEO Ahmad Al Kreebani was dismissed this month and replaced by Abdulwahab Al Shatti, Reuters reported.

A Kuwait Airways jet on the tarmac at Medina airport. The airline says it will not return to profit for at least two years

“It doesn’t matter who the CEO is – local or expat – the reality is the reality,” says John Grant, partner at Midas Aviation and an AGBI columnist. “It is a state-owned thing of pride rather than a commercial entity.”

Kuwait Airways announced in March that it does not expect to turn a profit for at least another two years as it struggles to recover from losses built up during the Covid-19 pandemic.

Jazeera Airways reported a 66 percent increase in net profit to KD10 million ($33 million) in 2024, on the back of higher revenue. Although listed on the Kuwait stock exchange, it is majority owned by the family-owned BoodaiCorp.

“Unless the government empowers leadership, depoliticises aviation governance and defines a coherent national strategy, the country will continue to lag behind regional peers who have successfully transformed aviation into a driver of economic diversification and global relevance,” says Bauer.