Jazeera Airways Group has announced its first half profits with a 27% increase in net gains compared to the same period last year.
Announcing its second quarter earnings for the year. The company registered a net profit of $10.65 million, an increase of 14.2% from the same quarter last year, which brings its half-year net profit to $20.7 million, a 27.1% increase from the same period last year.
Speaking at the results announcement group chairman, Marwan Boodai said the growth was driven by an increase in demand and higher load factor, which was up 4.1% compared to the same period last year.
“Our continued double-digit growth despite all the challenges proves that we have the right strategy in place for our market with the right product for our customers, to whom we are very thankful for making Jazeera Airways one of the most successful airlines in the Middle East,” he said.
Overall operating revenue was down by 1.5% over the previous year and Boodai spoke about increasing competitive pressure from other Gulf carriers, noting particularly Oman Air which has stepped up schedules to Kuwait to feed its Muscat long haul business.
Flightglobal reported too that Boodai believes that closer co-operation between Kuwait Airways and Jazeera, will enable the two airlines to feed one another’s networks, benefit the economy and fend off the influx of external carriers.
“A better Kuwait Airways is good for Jazeera,” he said.
Kuwait Airways is undergoing a fleet modernisation programme and the government is still trying to privatise the airline.
Flightglobal said that Jazeera has formally submitted an interest in taking 35% of the carrier with Boodai saying that the privatisation process is still being refined but says that Jazeera believes it will “accomplish the stake purchase soon”.