Jazeera Airways announced KD13.27 million in Group Net Profit for the first nine months of 2023. Total revenues for the period were up 12.8% to KD158.9 from KD 140.8 million in 2022, while Operating Profit was at KD18.08 million.
Last year, the company’s profit also included a one-time gain of KD1.73 million resulting from the sale and lease-back of engines. The airline continued to lead the market with a 35.78% share, 17% higher than the same period in 2022. Jazeera’s passenger numbers maintained strong growth, increasing by 35.6% to 3.5 million. For the nine-month period, load factor also grew to 79% compared to 76.4% last year.
Retail lease revenue at Jazeera Terminal (T5) was 52% higher compared to the previous year, while duty free revenue was KD 4.02 million, an increase of 22%.
Marwan Boodai, Chairman, Jazeera Airways highlighted: “For the nine months period of 2023, despite the tough regulatory, geo-political and regional landscape, we carried a record number of passengers, delivered a strong load factor, and built an attractive network of destinations that resulted in Jazeera having the biggest market share in our home base of Kuwait. While depressed yields due to over-capacity remain a challenge, we are well placed to leverage our low cost-base to maintain margins and create value for our shareholders.”
Financial and Operational Highlights
| 9M 2023 Highlights: Revenue: KD158.9 million, up 12.8% from 9M 2022Operating profit: KD18.08 million, down 30.4% from 9M 2022Net profit: KD13.27 million, down from KD20.76 9M 2022Passengers: 3.5 million, up 35.6% from 9M 2022Load factor: 79%, up 2.6% from 9M 2022 | 3Q 2023 Highlights: Revenue: KD61.05 million, down 3.4% from 3Q 2022Operating profit: KD8.73 million, down 45.9% from 3Q 2022Net profit: KD6.99 million, down 47.7% from 3Q 2022Passengers: 1.38 million, up 28.1% from 3Q 2022Load factor: 80.3%, up 0.2% from 3Q 2022 |
Third Quarter 2023 Review
In the third quarter, Jazeera launched direct flights from Kuwait to Islamabad and Tehran, now flying to a total of 64 destinations.
As part of its planned expansion, the airline welcomed two additional aircraft to its fleet in the last quarter. Jazeera Airways now operates a fleet of 22 aircraft across its network in the Middle East, Central and South Asia, Africa, and Europe.
In line with adopting sustainability practices into its operations, Jazeera in the last quarter, became the first low-cost carrier in the Middle East to switch from plastic to eco-friendly food service ware in-flight. By changing from plastic cutlery to 100% biodegradable spoons, forks, knives and napkins, Jazeera reduces 300 kilograms of plastic on its flights each month. This initiative is part of Jazeera’s goal to achieve net-zero emissions by 2050.
2023 Outlook
The outlook for 2023 continues to remains positive with a consistent demand for travel, Jazeera’s stringent cost control and solid balance sheet. However, overcapacity in the market continues to put yields under pressure which could impact margins. New destinations, aircraft and initiatives continue to be on the airline’s radar as it aims to grow further in countries such as Iran, Iraq, Saudi Arabia, and the Eastern European region.
The airline was recently recognized by several organizations including listings in the first Fortune 500 Arabia compilation for its contributions to the regional business landscape, in the Best Workplaces in Asia 2023 by Great Place to Work and an ICT Leadership Award for actively embracing and pioneering digital transformation in its operations.
