Jazeera Airways reports KD6.27 million (US$20.37m) net profit for first half 2023

Jazeera Airways (Jazeera) today announced financial results for the first half (1H) of 2023 with total revenues up 26.1% to KD97.85 million (US$317.8m) and operating profits of KD9.35 million (US$30.38m). Net profit for the period was KD6.27 million (US$20.37m) compared to KD7.38 million (US$23.98m) for the same period last year, but profits for the last year also included a “one-off” gain of KD1.73 million (US$5.62m) from the airline’s sale and lease-back of engines.

With a strong demand for air travel, Jazeera’s passenger traffic showed a 40.9% increase to 2.1 million for the first half of 2023. Load factors also increased by 4.1% to reach 78.1% in H1.

Announcing the results, Marwan Boodai, Chairman, Jazeera Airways, said: “As we share our positive results for the first half of 2023, we remain optimistic and confident of our performance. Demand for travel is high and we are pleased to see that reflected in the increased passenger traffic as well as consistent load factors.”

“We have introduced several new and attractive destinations and look forward to launching others in the next half of the year. While doing so, we continue to focus on maximizing our operational and financial performance through different products, services, and initiatives, in the best interest of all our shareholders, partners and customers.”

The Jazeera Airways Board of Directors approved an interim cash dividend of 28 fils per share, a total of KD6.16 million (US$20.02m) for H1 that reflects the company’s strong cash position.

Financial and Operational Highlights

H1 2023 Highlights:

• Operating revenue: KD97.8 million, up 26.1% from 1H 2022

• Operating profit: KD9.35 million, down 4.9% from 1H 2022*

• Net profit: KD6.27 million, down 15.1% from 1H 2022*

• Passengers: 2.1 million, up 40.9% from 1H 2022

• Load factor: 78.1%, up 4.1%

• Yield: KD42.83, down 10.5%

*Post Covid-19 effect

Second Quarter 2023 Review

In the second quarter of the year, Jazeera considerably expanded its network by adding direct flights to Moscow, Samarkand, Larnaca, Shiraz, Belgrade, Tirana and Tivat. The airline also became the first GCC carrier to fly direct from Kuwait to Sphinx International Airport in Cairo, Egypt making it Jazeera’s seventh destination in the country.

Continuing its growth plan, the airline welcomed two additional aircraft to its fleet, and has signed an order for more than 2,000 of the world's lightest aircraft seats to renovate its fleet. With these new seats, each aircraft in the Jazeera fleet will deliver a substantial weight saving of 1.2 metric tons, reducing jet fuel consumption and increasing passenger capacity with an additional row of seats.

With a focus on improving and enhancing product offerings, Jazeera also introduced online pre-ordering from their Duty Free and On-board shop.

2023 Outlook

In the second half of the year, Jazeera will be announcing several new routes that will cater to the demands of both business and leisure travellers.

By the end of the current financial year, Jazeera Airways will be en route to adding three more aircraft to its fleet. With the additional destinations planned for the rest of the year, these will help serve the airline’s fast-growing network.