Troubled flag carrier Kuwait Airways urged parliament to approve quickly state plans to settle 211 million dinar (USD$700 million) of its losses, saying this will help bring it back to profit.

KAC's newly-appointed chairman, Sheikh Talal al-Mubarak al-Sabah, told CNBC Arabiya in an interview parliament had yet to take a decision on government proposals to cover the losses, which the airline incurred from 1997 to 2004.

"Kuwait Airways cannot carry on with efforts to improve its performance because of lacking financing," Sheikh Talal said. "We urge parliament to quickly decide on the issue of the losses... there is no logical reason for the delay."

He said KAC, saddled with debt since the 1990-91 Gulf War, was also struggling to pay back USD$1.6 billion in loans despite a cost-cutting drive.

The last time Kuwait Airways made money was fiscal year 2000, when it logged a USD$77 million profit -- its first since the 1991 Gulf war in which a US-led multinational force drove out Iraq's army.

In September, Sheikh Talal had expected KAC's losses to widen 10 percent to 32 million dinars this fiscal year due to higher fuel costs. He also forecast the company to become profitable within three years.

(Reuters)