Skip to content Skip to Search
Skip navigation

Kuwait aircraft lessor Alafco slashes losses

Kuwait aircraft lessor Creative Commons/Md Shaifuzzaman Ayon
Alafco leases Airbus and Boeing aircraft to airlines including Air India, Malaysia Airlines and Kuwait Airways
  • Lease revenue down 63%
  • Other income up 121%
  • Net losses KD1.2m

Kuwait’s state-funded aircraft leasing firm, Alafco, has cut its annual net losses by 98 percent, the company said at its latest earnings presentation.

Alafco, whose shareholders include the Kuwaiti government, said operating lease revenue dropped by 63 percent to KD35.9 million ($116.74 million) for the financial year ending on September 30.

However, this was made up for by a 121 percent increase in other income and the agreed sale of 53 aircraft to the Australian outfit Macquarie Airfinance, as part of an extensive restructuring process.

Net losses for the financial year 2022-23 were down to KD1.2 million, from KD58.9 million the previous year.

The company said that no impairment provision had been charged by Alafco during the period, while savings were made on not having to record depreciation for the 53 aircraft to be sold. 

Other expenses, including aircraft maintenance, storage fees and collection expenses were also reduced, investors and analysts were told.

The lessor sold 27 of the 53 aircraft to Macquarie over the course of the year and transferred the ownership of 20 Boeing 737-8 Max aircraft, which are currently on order.

Delivery was also taken of two A320 Neo aircraft leased to the Mexican low-cost carrier Volaris.

Alafco, which counts Kuwait Airways, Air India, Hong Kong Airlines and Oman’s SalamAir as customers, had 51 aircraft in its portfolio as of September 30, with an average age of 4.9 years. Its average remaining lease term is eight years.

The global aircraft leasing market is projected to grow more than 80 percent, from $172.9 billion in 2023 to $317.5 billion by 2030, Fortune Business Insights says.

Latest articles

Turkey foreign property sales

Foreigners turning back on Turkish real estate

Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […]

Adult, Male, Man

UAE to invest in Turkey’s economic sectors says minister

The UAE is willing to invest across numerous sectors in Turkey, said Emirati energy and infrastructure minister Suhail Al Mazrouei. The Gulf state is exploring opportunities in the energy, agriculture, transportation, tourism and other sectors, state-run Anadolu Agency (AA) news agency reported, citing the minister on the sidelines of the St. Petersburg International Economic Forum. […]

Opec Secretary General Haitham Al Ghais says peak oil 'is not on the horizon'

Upstream oil and gas ‘needs more annual investment’

Annual capital expenditure for exploration and production in the upstream sector of the oil industry needs to increase by 22 percent by 2030 because of growing demand and cost inflation, experts say. A cumulative $4.3 trillion needs to be invested between 2025 and 2030, according to a report by the International Energy Forum (IEF) and […]

Rothschild Saudi

Edmond de Rothschild to run funding vehicle for Saudi projects

The Edmond de Rothschild Group is establishing a funding vehicle for infrastructure projects in Saudi Arabia along with the local firm SNB Capital, as part of a deal in which the Swiss investment bank will set up offices in the country.  Saudi Arabia’s massive economic diversification programme has run into financial obstacles as it faces […]