Jazeera Airways announces 2018 earnings

 

Jazeera Airways today announced its financial and operational results for the financial year ending December 31, 2018, reporting a record growth of 42.8% in passengers and a 45.5% growth in operating revenue in comparison to the same period last year.

The Company’s adjusted net profit stood at KD8.7 million in 2018 while its reported net profit came in at KD6.7 million taking into account the impact of the irregular disruptions that took place during the year and the contribution of the terminal which opened in May 2018 but did not have any impact on the comparable year.

Financial and Operational Highlights:

  • Operating revenue: KD82.4 million, up 45.5% from 2017
  • Adjusted operating profit: KD8.8 million, up 13.9% from 2017
  • Adjusted net profit: KD8.7 million, up 5.7% from 2017
    (Adjusted 2018 operating and net profit account for KD2.0 million one-offs related to both irregular disruption events in 2018 and operating losses related to facilities operations – reported net profit for 2018 was KD6.7 million)
  • Passengers: 2.0 million up 42.8% from 2017
  • Fleet utilization: 13.6 hours, up 24.7% from 2017
  • Load factor: 75.2%, up from 73.9% 2017

Jazeera Airways Chairman, Marwan Boodai, said: “2018 was another milestone year for Jazeera Airways as it continued to expand its network by adding seven popular destinations to serve a growing customer-base, especially in the Indian sub-continent. The expansion has enabled Jazeera Airways to grow from carrying passengers point to point to and from Kuwait, to routing passengers through the Kuwait hub to their ultimate destinations.

Supporting the expansion, we took delivery of the first A320neo in the Middle East and made an order for an additional three of the fuel-saving engine aircraft. Choosing Jazeera Airways as the first airline to receive the new model in the region is proof of the confidence that major manufacturers and lessors have in the Company backed by its exceptionally strong financial position and superior track record.

“We also achieved another important milestone in the development of our business model, which is the inauguration of our dedicated terminal at Kuwait International Airport; a significant game-changer for our operations and customer experience. We are now able to invest in and roll-out new customer-centric services that have started to show direct results in customer satisfaction and also in the bottom line.”

Since it started operations in May 2018, all Jazeera Airways passengers flew from the new “Jazeera Terminal”, which carried more than 1.2 million passengers since its inauguration. The Duty Free and other retail shops started operations while other services inside the terminal are consistently being added to further improve on customer experience.

During the year, Jazeera Airways was recertified by the IATA Operational Safety Audit (IOSA) Program, an international recognition of our operational management and control systems.

The new destinations launched by Jazeera Airways are a testament of the success of its expansionary model as the airline managed to acquire leading market shares on new routes launched throughout 2018, leading with 43% market share on Kuwait-Tiblisi, 42% on Kuwait-Ahmedabad, 27% on Kuwait-Kochi and 25% on Kuwait-Lahore. Further, the airline operated its new route between Kuwait and New Delhi in the last two weeks of the year.

Fuel prices fluctuated considerably in 2018 with Brent reaching a peak of USD86 per barrel. On average, the price of fuel was 30% higher than that of 2017. Along with this, the regional competitive landscape remained strong and highly competitive. Our local market, however, witnessed some great developments with the number of travelers increasing by 8% over the comparable period.

Boodai concluded: “Jazeera Airways remained resilient despite these challenges and maintained zero debt by year end. We look forward to 2019 to continue expanding our network to new destinations in Europe, India, Pakistan, Bangladesh and the Gulf. The expansion will be supported with the delivery of three new A320neo aircraft, as part of a plan to increase our fleet in the coming years.”

Jazeera Airways flies to 27 popular destinations across the Middle East, India and Europe comprising high-demand business, leisure, family and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria, Amman, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Madinah, Cairo, Al Najaf, Taif, Doha, Kochi, Mumbai, Hyderabad, Ahmedabad, Lahore, Baku, Tbilisi and New Delhi.

The airline operates a fleet of Airbus A320s and an Airbus A320neo, the first to be operated in the Middle East.