Jazeera Airways reports KWD 13.27 million profit, strong passenger numbers

Jazeera Airways has reported KWD 13.27 million profit for the first nine months of 2023

Jazeera Airways has reported KWD 13.27 million profit for the first nine months of 2023 with strong passenger numbers and an overall positive outlook for the rest of the year.

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Operating on KWD 13.27 million (USD 43 million) in group net profit for the first nine months of 2023, low-cost Kuwaiti airline Jazeera Airways has announced a favourable outlook for the year so far.

In a press statement, the airline says that its total revenues for the period were up 12.8 pc to KWD 158.9 from KWD 140.8 million in 2022, while operating profit was at KWD 18.08 million.

The airline says that last year, the company’s profit also included a one-time gain of KWD 1.73 million resulting from the sale and lease-back of engines. The airline continued to lead the market with a 35.78 pc share, 17 pc higher than the same period in 2022.

Jazeera says passenger numbers maintained strong growth, increasing by 35.6 pc to 3.5 million. For the nine-month period, load factor also grew to 79 pc compared to 76.4 pc last year. Retail lease revenue at Jazeera Terminal (T5) was 52 pc higher compared to the previous year, while duty free revenue was KWD 4.02 million, an increase of 22 pc.

The airline adds that outlook for 2023 continues to remain positive with a consistent demand for travel, Jazeera’s stringent cost control and solid balance sheet. However, overcapacity in the market continues to put yields under pressure which could impact margins. New destinations, aircraft and initiatives continue to be on the airline’s radar as it aims to grow further in countries such as Iran, Iraq, Saudi Arabia, and the Eastern European region, the airline adds.

Kuwait’s low-cost airline Jazeera Airways says it has registered a strong growth in the first quarter of 2023. In a press statement, the airline says that passenger traffic registered an increase of 56.6 pc to 1.1 million in the current quarter and load factor reached 82.1 pc, an increase of 6.9 pc compared to Q1 2022. According to the statement, a net profit of USD 7 million for the first quarter of 2023 as opposed to USD 12 million in the same period in 2022, when the fares were far higher as a result of the strong post-pandemic demand. “2023 has started off on a positive note for Jazeera Airways. Despite fuel prices putting pressure on margins for the first quarter, a continued focus on operating costs enabled us to deliver profits in line with our aggressive growth targets and on the track to be a fantastic year. Load factor in this quarter reached 82.1 pc, the highest ever for Jazeera in any quarter, especially for Q1 which is typically not the strongest. This demonstrates the strength of our business model and sound validation from our customers,” says Marwan Boodai, Chairman, Jazeera Airways. The airline statement goes on to add that over the next few months of the current financial year, Jazeera will welcome four additional aircraft into its fleet. Jazeera Airways ordered an Airbus simulator after receiving the designation of an ‘Approved Training Organisation’ from Kuwait's Directorate General of Civil Aviation (DGCA) last year. This simulator, which is anticipated to be deployed by the end of 2023, will allow for internal pilot training and oversight to guarantee the highest standards of safety for both crew and passengers. The airline also plans to work with a training facility recognised by the European Aviation Safety Agency (EASA) to start its own Multi-Pilot License (MPL) programme.

Marwan Boodai

“For the nine months period of 2023, despite the tough regulatory, geo-political and regional landscape, we carried a record number of passengers, delivered a strong load factor, and built an attractive network of destinations that resulted in Jazeera having the biggest market share in our home base of Kuwait. While depressed yields due to over-capacity remain a challenge, we are well placed to leverage our low cost-base to maintain margins and create value for our shareholders,” says Marwan Boodai, Chairman, Jazeera Airways.

In Q3, Jazeera launched direct flights from Kuwait to Pakistan-capital Islamabad and Iran-capital Tehran, now flying to a total of 64 destinations. The statement adds that as part of its planned expansion, the airline welcomed two additional aircraft to its fleet in the last quarter. Jazeera Airways now operates a fleet of 22 aircraft across its network in the Middle East, Central and South Asia, Africa and Europe.

The airline says that in line with adopting sustainability practices into its operations, Jazeera in the last quarter, became the first low-cost carrier in the Middle East to switch from plastic to eco-friendly food service ware in-flight.