Abu Dhabi, UAETuesday 12 November 2019

Kuwait's Jazeera Airways posts 41% rise in third-quarter profits

Budget airline's operating revenue rises 21% as passenger tally increases 14% in third quarter

Kuwait's Jazeera Airways reported a 41% increase in third quarter net profit year-on-year. Courtesy of Jazeera Airways.
Kuwait's Jazeera Airways reported a 41% increase in third quarter net profit year-on-year. Courtesy of Jazeera Airways.

Kuwait's Jazeera Airways posted a 40.6 per cent year-on-year rise in its third quarter net profit as operating revenue rose and it carried more passengers.

The listed budget carrier's net income rose to 9.9 million Kuwaiti dinars (Dh119.7m) in the three months to September, Jazeera Airways said in a statement on Monday. Third quarter operating revenue increased 21.4 per cent

"Jazeera Airways maintains its strong financial position supported by a solid operational model as it continues to expand," Marwan Boodai, the airline's chairman, said.

The Mideast discount carrier is talking to Airbus and Boeing about a potential narrowbody jet order. It will decide next year between the Airbus A320Neo or the embattled Boeing 737 Max for an order of about 25 planes.

The airline carried 703,378 passengers in the third quarter, up 14 per cent from the prior-year period.

Load factors, or a measure of seats filled, reached 80.7 per cent, rising marginally 0.7 per cent year-on-year, the airline said.

Jazeera Airways will take delivery of two new A320 Neo aircraft by the end of the year as it expands its fleet.

The low-cost airline is considering adding more long-haul routes using its fleet of A320 Neo jets after announcing it will serve London Gatwick, Britain’s second-busiest airport, from October 27, chief executive Rohit Ramachandran said in August. Any potential long-haul expansion after the London Gatwick route is unlikely before the end of 2020.

The airline served 29 destinations in the third quarter and is preparing to add more routes to Osh in Kyrgyzstan on November 3, Kathmandu in Nepal, Karachi in Pakistan, Chittagong in Bangladesh, Al Ain in the UAE and Dammam and Abha in Saudi Arabia.

The airline currently operates a fleet of nine A320s and two A320 Neos.

Updated: November 5, 2019 09:31 AM

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