Kuwait airways’ launched its latest full-year financial statement, which indicates that the flag carrier had a net loss of KD264.5 million ($870 million) when the pandemic hit 2020.

The revenues from airlines are sunk by 64 percent over the year, to just under KD138 million.

Kuwait Airways had already been unprofitable before the crisis, turning in a 2019 net loss of KD107 million.

Its seems that the airline was severely affected by restrictions imposed by the emirate’s government and suspended all their inbound and outbound flights on March 7, 2020.

“Being a global airline and even with the industry trend, a substation part of the group’s capacity had to be reduced,” the carrier states.

Kuwait Airways’ caravan in 2020 comprised 30 aircraft. But the airline was limited from April 2020 to essential travel and specific repatriation flights, plus cargo-only services.

After having the heavy loss, the airline’s management stated that it “does not consider” the figures showing the existence of any material uncertainty regarding the airline’s ability to continue as a going concern.

Moreover, the company also received KD212 million from their stakeholders in March 2020- this was part of an overall planned capital increase of KD374 million to finance fleet expansion and its business strategy. The airline had total positive equity at the end of the year.

However, Kuwait airways took several steps in a bid to cost-saving, nearly two years back in 2020 to counter the downturn’s effects, shifting its aircraft deliveries, cutting its workforce by 21%, converting Boeing 777-300ERs temporarily into cargo configuration, negotiating lower rates with maintenance providers and other suppliers, and deferring capital expenditure.

It further says it hopes to return to “pre-crisis performance” in 2024.

Kuwait Airways recently agreed to update and restructure its caravan with a range of Airbus models under a revised deal with the airframe.