Kuwait’s Jazeera Airways Q3 Net Profit Surges 22.6%

Kuwait-based Al Jazeera Airways group has announced a net profit of KD8.1 million ($28 million) for the third quarter of 2014, up 22.6 per cent from the same period last year.

It was also the Kuwait-listed group’s best ever quarter earnings in history, a statement said.

Jazeera Airways’ operating revenue rose 15.2 per cent to reach KD23.1 million during Q3 while its operating profit was KD9.1 million, up 17.8 per cent from the corresponding period in 2013.

The group’s equity improved by KD10 million since Q3 2013 while it saw a growth of 10.8 per cent in passengers, the statement added.

Meanwhile, the airline’s operating profit grew 9.9 per cent to reach KD15.5 million during the first nine months but its net profit declined 7.9 per cent to reach KD13 million.

“Despite the continued political unrest in several areas of our network, the company managed to deliver the best earnings in the history of our nine-year old airline,” said Marwan Boodai, Jazeera Airways Group chairman.

“That’s not to say that Jazeera Airways wasn’t impacted by the rise of hot spots in our region. In fact, like many of our peers, some of the destination flights paths had to be rerouted to ensure the safety of our passengers and crews, and that resulted in more flying hours.

“However, we were able to absorb the impact in Q3 while registering 10.8 per cent growth in flown passengers and a 22.6 per cent growth in profitability.”

The company has been ramping up efforts to boost its financial performance amidst stiff competition from other Gulf airlines.

Earlier this year, Jazeera Airways launched exclusive gates in Kuwait Airport for its customers while being the only Kuwaiti airline to provide booking options via mobile and online check-in for travellers.

Jazeera Airways also upgraded its Istanbul route by operating five flights a week to the city’s primary airport, Istanbul Atatürk Airport (IST) instead of flying to Sabiha Gökçen International Airport (SAW), which the airline has served since 2008. The move to Istanbul Atatürk Airport bolstered the route by offering customers better flight schedules to an airport that is central to the city, the airline said.

Jazeera Airways Group has a fleet of 15 A320s through its wholly owned leasing-arm Sahaab Aircraft Leasing. Sahaab has assets placed with Virgin America, SriLankan Airlines, Flynas, TAP Portugal and Jazeera Airways.