KUWAIT: Jazeera Airways today announced strong results with a net profit of KD7.8 million for the first half (H1) of 2022, compared to a net loss of KD11.7 million in the first half of 2021. Total revenue for the period reached KD77.6 million, up four times from the comparable period, while operating profit stood at KD9.8 million, up 187%. These solid financial results were driven by active operations that saw the company carry its highest ever number of passengers in the second quarter of 817k bringing the total for H1 2022 to a record of 1.5 million passengers as travel activities gradually return to pre-pandemic levels. Correspondingly, load factor reached 74.0% for the first half of the year reflecting an increase of 19.3% over last year.
Jazeera Airways Chairman, Marwan Boodai commenting on the results by saying: "Our forecasts and expectations for the first half of the year were very accurate as passengers’ appetite to travel was met with a return of travel capacity at Kuwait International Airport since the second half of last year. Jazeera has placed itself well to reap the benefits of the new market dynamics and was able, through its constant communication with its passengers and its analysis of the market, to return stronger than before. We launched new tourist destinations and started services to high traffic ones and will continue our growth and progress throughout the coming quarters.”
During H1 2019, the last full comparable period before COVID-19, Jazeera carried 1.1 million passengers and reported a net profit of KD6.2 million. The board of the company recommended an interim cash dividend of KD6.6 million or 30% of share capital, marking the first time in the history of the company to make an interim cash distribution, which reflects the strong cash position of Jazeera Airways and its positive views on recovery post the pandemic.
Financial and Operational Highlights
H1 2021 Highlights:
● Revenue: KD77.6 million, up 399.0% from H1 2021
● Operating profit: KD9.8 million, compared to operating loss of KD11.3 million in H1 2021
● Net profit: KD7.8 million, compared to a net loss of KD 11.7 million in H1 2021
● Passengers: 1.5 million, up 632.2% from H1 2021
● Load factor: 74.0%, up 19.3% from H1 2021
Second Quarter 2022 Review
Jazeera Airways achieved a new milestone as the Maintenance & Engineering team performed the first in-house "A” check, which is a large step towards dependency in that key service line after being fully dependent on outsourcing CMAO, Part 145 and other services until two years ago. This will enable the airline to achieve higher control in terms of operational efficiency and create financial savings in the future for the company. During the quarter, Jazeera added an additional wet leased aircraft to its fleet in preparation for the Summer high season, while also concluding two new aircraft on long-term leases, that would join the fleet in September 2022, after reaching agreements with Airbus and lessors.
Jazeera’s Duty-Free division, which took over the flagship Duty Free store at Jazeera Terminal 5 (T5) in December 2021, was fully profitable for the second quarter of operations and exceeded all commercial and financial objectives. Additionally, Jazeera Airways also continued to grow its network with the launch of several new services to Vienna, Prague, Abha, Hail and most recently Qassim. These new destinations will cater for different market segments that fall within Jazeera’s flying radius.
2022 Outlook
Jazeera has announced plans to launch new routes during the summer season to cater to high tourist demand. The airline will continue to grow its fleet and number of destinations during 2022 as originally planned, maintaining a positive outlook for the rest of the year despite higher fuel prices since March 2022.