Wataniya Airways was forced to temporarily suspend operations due to "unexpected" circumstances that "could not be avoided", according to chairman Ali Al-Fozan.
Wataniya planned to operate six aircraft from 12 August 2018, but ran into difficulties when three planes in its fleet were taken out of service. These included an A320, which needed an engine repaired.
The Kuwaiti airline also attempted to lease two leased aircraft from Greece's Olympus Airways, but was blocked by the DGCA over undisclosed issues relating to the reputation of the Olympus and malfunctions with the aircraft, thus resulting in the termination of the lease contract.
As a result, Wataniya Airways was forced to cut operations by 50 percent.
The airline says it will comply with all decisions and regulations with Kuwait's Directorate General of Civil Aviation (DGCA), following the announcement.
The carrier's board plans to take necessary steps to revive the airline soon, as Wataniya's financial position was positive.