Kuwait Airways reported a loss of KWD23.8 million ($82 million) for the year ended March 31, narrowed more than 40% from a KWD39.9 million loss in the 2004-05 financial year, the state Kuwait News Agency reported.Revenues rose 14.1% to KDW250.8 million while expenses climbed 5.9% to KDW274.7 million driven by increasing fuel and maintenance costs, the airline said. Chairman Sheikh Talal Mubarak Abdullah Al-Ahmad Al-Sabah told KUNA that the carrier's status as a state-owned enterprise does not afford it the flexibility to adapt quickly to changes in the industry. "We are doing our best in spite of the local and international obstacles we are facing," he said.

Kuwait Airways has lost money in 15 of the past 16 years, the only exception being FY00 when it reported a profit of approximately KWD23 million owing to compensation from Iraq, the Middle East Times reported. It operates a mixed fleet of 15 Airbus aircraft plus two 777s.