SEOUL: The International Air Transport Association (IATA) expects it could take until August before the Boeing 737 MAX returns to service, the airline group’s head said on Wednesday, adding that the final say on the timing rested with regulators.
The 737 MAX was grounded globally in March after a crash in Ethiopia killed all 157 people on board, the model’s second deadly crash in five months.
“We do not expect something before 10 to 12 weeks in re-entry into service,” IATA Director General Alexandre de Juniac told reporters in Seoul. “But it is not our hands. That is in the hands of regulators.”
IATA plans to organize a summit with airlines, regulators and the manufacturer in 5 to 7 weeks to discuss what is needed for the 737 MAX to return to service, he said.
At an IATA meeting in Montreal last week, airline members said they wanted regulators to cooperate closely on the decision for the plane’s re-entry to service, de Juniac said.
“We hope that they will align their timeframe,” he said of regulators.
The Federal Aviation Administration (FAA) expects to approve the jet’s return to service as soon as late June, representatives of the US air regulator informed members of the United Nations’ aviation agency in a private briefing last week, sources told Reuters.
US operators United Airlines, Southwest Airlines, and American Airlines have removed the planes from their flight schedules until early to mid-August.
Boeing 737 MAX may not return to service until August: IATA head
Boeing 737 MAX may not return to service until August: IATA head
- The 737 MAX was grounded globally in March after a crash in Ethiopia, the model’s second deadly crash in five months
- Airline members want regulators to cooperate closely on the decision for the plane’s re-entry to service
Kuwait to boost Islamic finance with sukuk regulation
- The move supports sustainable financing and is part of Kuwait’s efforts to diversify its oil-dependent economy
RIYADH: Kuwait is planning to introduce legislation to regulate the issuance of sukuk, or Islamic bonds, both domestically and internationally, as part of efforts to support more sustainable financing for the oil-rich Gulf nation, Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah said on Wednesday.
Speaking at the World Governments Summit in Dubai, Al-Sabah highlighted that Kuwait is exploring a variety of debt instruments to diversify its economy. The country has been implementing fiscal reforms aimed at stimulating growth and controlling its budget deficit amid persistently low oil prices. Hydrocarbons continue to dominate Kuwait’s revenue stream, accounting for nearly 90 percent of government income in 2024.
The Gulf Cooperation Council’s debt capital market is projected to exceed $1.25 trillion by 2026, driven by project funding and government initiatives, representing a 13.6 percent expansion, according to Fitch Ratings.
The region is expected to remain one of the largest sources of US dollar-denominated debt and sukuk issuance among emerging markets. Fitch also noted that cross-sector economic diversification, refinancing needs, and deficit funding are key factors behind this growth.
“We are about to approve the first legislation regulating issuance of government sukuk locally and internationally, in accordance with Islamic laws,” Al-Sabah said.
“This enables us to deal with financial challenges flexibly and responsibly, and to plan for medium and long-term finances.”
Kuwait returned to global debt markets last year with strong results, raising $11.25 billion through a three-part bond sale — the country’s first US dollar issuance since 2017 — drawing substantial investor demand. In March, a new public debt law raised the borrowing ceiling to 30 billion dinars ($98 billion) from 10 billion dinars, enabling longer-term borrowing.
The Gulf’s debt capital markets, which totaled $1.1 trillion at the end of the third quarter of 2025, have evolved from primarily sovereign funding tools into increasingly sophisticated instruments serving governments, banks, and corporates alike. As diversification efforts accelerate and refinancing cycles intensify, regional issuers have become regular participants in global debt markets, reinforcing the GCC’s role in emerging-market capital flows.
In 2025, GCC countries accounted for 35 percent of all emerging-market US dollar debt issuance, excluding China, with growth in US dollar sukuk issuance notably outpacing conventional bonds. The region’s total outstanding debt capital markets grew more than 14 percent year on year, reaching $1.1 trillion.
