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