Overcapacity, currency fluctuations push Jazeera in losses in Q1 2024

Market share rises despite tough operating conditions
2024-05-03
/
/ New Delhi
Overcapacity, currency fluctuations push Jazeera in losses in Q1 2024
Overcapacity, currency fluctuations push Jazeera in losses in Q1 2024

The airline says that its total group revenue for this quarter was KD 46.4 million

Kuwaiti low-cost carrier Jazeera Airways has reported a marginal increase in market share but tough market conditions and currency fluctuations push the airline into net loss in Q1 2024.
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Though it has registered a slight increase in its total sales in the first quarter of the current financial year, Kuwait-based low-cost carrier Jazeera Airways has reported a sharp downturn in its profitability as the airline recorded a net loss of KD 2.7 million, a drop of 216.5 pc as compared to the same period last year.

In a press statement, the airline says that it did manage to achieve operational breakeven and blamed the losses on foreign currency fluctuations, which led to a loss of KD 2.5 million, or 93 pc of the net loss. The airline says that its total group revenue for this quarter was KD 46.4 million, down from KD 48.3 million in Q1 2023.

It adds that it handled 1.2 million passengers in Q1, an increase of 4.2 pc compared to same period last year and its load factor was at 79.3 pc. The airline says it did manage to increase its market share to 37.3 pc as against 36.1 pc in Q1, 2023. The retail lease revenue for Terminal 5, owned and managed by the airline increased to KD 378,000 and duty free business grew by 5.4 pc over corresponding period last year to KD 1.2 million.

Marwan Boodai

Marwan Boodai

Jazeera Airways, time and again, has demonstrated strong resilience through several unique situations. Last year, headwinds driven by overcapacity, combined with a tough regulatory, geopolitical, and regional landscape put pressure on our year end results. In Q 1, 2024, our operations remained steady, yet we recorded a loss impacted by foreign currency fluctuations. However, by staying focused on controlling our operational costs and, nimble and agile to market conditions, we are well positioned to grow in summer and to navigate 2024” says Marwan Boodai, Chairman, Jazeera Airways.

The airline says that in Q1 2024, it also welcomed a new Chief Executive Officer, Barathan Pasupathi (Bara), a veteran in aviation and finance with vast experience in heading a budget carrier. The airline also announced the launch of direct flights to Batumi, Georgia scheduled to start from June 14. Other destinations are also scheduled to resume operations for the summer season. These include Antalya, Beirut, Bodrum, Larnaca, Prague, Sarajevo, Salalah, Sharm El Sheikh, Tirana, Tivat, and Trabzon, says the airline.

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