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Jazeera Airways announces KD3.8 million (US$12.43m) in net profit in first quarter 2022

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– Record profit for a first quarter –

Kuwait, April 26, 2022: Jazeera Airways announced a net profit of KD3.8 million (US$12.43m) for the first quarter (Q1) of 2022, compared to a net loss of KD5.2 million (US$17.00m) in the first quarter of 2021. Total revenue for the quarter reached KD35.7 million (US$116.74), up 339.2%, while operating profit stood at KD5.3 million (US$17.33m), up 199.3%.

These record earnings were supported by close to sixfold increase in number of passengers with restrictions at Kuwait International Airport being eased and travel capacity gradually increased to levels near to the pre-pandemic period. Similarly, load factor reached 75.2%, an increase of 28.7%.

Commenting on the results, Jazeera Airways Chairman, Marwan Boodai said: “The gradual return of travel capacity at Kuwait International Airport since the second half of last year as well as the lifting of travel restrictions worldwide have shown that there is indeed a latent and strong appetite for travel.

“Jazeera has focused in the first quarter on expanding its services and capacity in preparation of the launch of new tourist and high demand destinations during the year, all supported with a strong financial position and a cautious strategy to mitigate the risks of recent geopolitical developments.” 

In comparison, during Q1 2019 before the start of the Covid-19 pandemic, Jazeera had reported a net profit of KD1.5 million (US$4.90m) and flown 529.6 thousand passengers. Q1 2022 performance shows strong resilience in the commercial travel, as well as positive sentiment to the sector for 2022 and beyond.

Financial and Operational Highlights

Q1 2021 Highlights:
Operating revenue: KD35.7 million, up 339.2% from Q1 2021
Operating profit: KD5.3 million, up 199.3% from Q1 2021
Net profit: KD3.8 million, up 174.2% from Q1 2021
Passengers: 707.7 thousand, up 579.8% from Q1 2021
Load factor: 75.2%, up 28.7%
Yield: KD47.6, down 36.4%

First Quarter 2022 Review

Jazeera Airways achieved a new milestone as an “Approved Training Organization” certified by Kuwait’s Directorate for Civil Aviation, enabling the airline to conduct training programs for pilots and cabin crews from its headquarters in the State of Kuwait. The move enables the airline to expand its capabilities to train the required manpower for future growth.

The airline has also been certified to conduct performance of line maintenance on its aircraft; a certification that increases its operational efficiency significantly.

Jazeera also inaugurated the VIV service, which offers the first private terminal experience at Kuwait International Airport, serving departing and arriving passengers traveling on airlines operating from Terminals 1 and 5 and for general aviation and private jets. The VIV Terminal gives passengers the benefits of a private check-in reception and handling services, gourmet à la carte meals, private customs and immigration area, luxury amenities, and chauffeured transportation.

Jazeera’s Duty Free subsidiary, which took over the flagship Duty Free store at Jazeera Terminal 5 (T5) in December 2021, was fully profitable and achieved all commercial and financial objectives.

Additionally, Jazeera Airways also continued to grow its network with the launch of a new service to the coastal city of Chattogram in Bangladesh. The service is the second for the airline to Bangladesh following the launch of Dhaka in October 2020, serving over 200,000 Bangladeshi nationals living in Kuwait and connecting to more passengers across the GCC region.

2022 Outlook Jazeera has announced plans to launch new routes ahead of the summer season to cater to high tourist demand. The airline has confirmed the launch of routes to Vienna and Prague in June, in addition to other destinations that will be announced during the year.

Source : Jazeera Airways

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