Kuwait’s Jazeera Airways plans expansion in Saudi Arabia, China

Kuwaiti low-cost carrier Jazeera Airways plans to expand further into neighboring Saudi Arabia, where it’s already one of the largest foreign airlines operating in terms of frequencies.

“Expansion will be in two areas,” Chief Executive Officer Rohit Ramachandran said in an interview on Monday. “One in Saudi Arabia, where we have dramatically increased our operations, and also in central Asia.”

The airline now operates over 70 flights a week to Saudi Arabia, flying to eight cities. “By the end of the year, we should be at 11 cities,” adding Tabuk, Al-Jouf and Hofuf, he said. 

Expansion in central Asia is “coming in quite nicely to our network, and also to our bottom line,” Ramachandran said. Jazeera currently flies to Xian in China once a fortnight, but the carrier plans a “significant expansion” into the country once it eases Covid protocols.

The company has virtually zero debt, and cash reserves of 55 million dinars ($176 million). Third-quarter profit at the airline rose 14% 13.4 million dinars and the carrier paid an interim dividend -- its first. 

Still, an increase in fuel prices -- which have risen much faster than the price of Brent -- has been a key challenge, Ramachandran said. “Airlines around the world have had to cater to a much higher fuel price than last year,” he said.

Jazeera currently operates an all-Airbus fleet, comprised of 11 A320neos and 8 A320s.