Skip to content Skip to Search
Skip navigation

Kuwait’s Jazeera Airways’ profits slump 36.1%

9K-CAA_Airbus_A320_Jazeera_Airways_(7691715654) Aeroplan plane Creative Commons/aeroprints.com
Jazeera Airways has a fleet of 22 aircraft and recently expanded its routes to destinations including Russia, Uzbekistan, Egypt and Iran
  • Chairman: it’s been a ‘tough’ 9 months
  • Load factor increases to 79%
  • Most active airline at KWI

Kuwaiti low-cost carrier Jazeera Airways has reported a 36.1 percent drop in profits for the first nine months of the year with a warning that over-capacity issues could further impact margins.

The airline, which sits second in the country behind Kuwait Airways, saw revenues increase 12.8 percent year-on-year over the period and passenger numbers were up 35.6 percent to 3.5 million.

Average load factor also increased by 2.6 percentage points to 79 percent.

However, this was not reflected in the bottom line, with operating profit down 30.4 percent to KD18.08 million ($58.6 million), largely attributed to a 17.3 percent decline in yields, and net profit slumping to KD13.27 million.

Marwan Boodai, chairman of Jazeera Airways, said the past nine months had presented a “tough regulatory, geopolitical and regional landscape”.

Jazeera Airways took delivery of two Airbus A320ceo aircraft during the third quarter of this year, which increased the size of its fleet to 22.

Its network also expanded with new destinations including Russia, Uzbekistan, Egypt, Iran, Montenegro, Serbia, Albania and Pakistan.

“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,” added Boodai.

Jazeera had the most active aircraft movements at Kuwait International Airport (KIA) in Q3, at 13,260.

Passenger traffic through KIA is forecast to grow by 7 percent this year, fuelled by increased activity across the summer months, according to the Gulf state’s Directorate General of Aviation.

Latest articles

ADQ's holdings include Abu Dhabi National Energy Company (Taqa) and are worth almost $200 billion

ADQ: how Abu Dhabi’s ‘baby’ fund is finding its feet

Abu Dhabi sovereign wealth fund ADQ may be the younger, smaller sibling of ADIA and Mubadala but there are no signs of an inferiority complex as it executes billion-dollar deals at home and overseas. Most notable was the $35 billion agreement signed with the Egyptian government in February this year to develop Ras El Hekma, […]

Suriname oil

QatarEnergies buys into Suriname oil expansion

The state-owned giant QatarEnergy has signed a deal with US oil company Chevron to acquire a 20 percent interest in a production-sharing contract for an offshore concession in the South American country of Suriname. Chevron will keep a 40 percent interest in Surname’s block 5, as will Paradise Oil, an affiliate of Suriname’s national oil […]

Rakbank

Rakbank plans first bond to fund social projects

The National Bank of Ras Al Khaimah (Rakbank) is planning to launch its first social bond issuance, a news report has said. The Abu Dhabi-listed bank is seeking bids for the five-year benchmark-sized dollar-denominated bond, Reuters reported. The initial price was set at 170 basis points over US Treasuries, with the final pricing expected on confirmed […]

The proposed sharia standard 62, which aims to transition the industry towards asset-backed sukuk, will not affect 2024 issuance, says S&P

Sharia standard 62 may disrupt sukuk market, says S&P

Global sukuk issuances are likely to suffer next year if the proposed standard 62 sukuk changes to sharia guidelines are implemented, according to the American credit rating agency S&P in a new report. “Adopting Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standard 62 guidelines as they have been presented could disrupt the market,” […]