Kuwait, May 10, 2021: Jazeera Airways today announced its earnings for the first quarter of 2021, reporting an operating revenue of KD8.1 million. The number of passengers flown during the quarter reached 104,116, down from 496,484 in the first quarter of 2020, as restrictions continue at Kuwait International Airport (KWI). The airline’s load factor stood at 58.4%, while yield increased by 105.2% to KD74.9.
The airline registered a net loss of KD5.2 million; an improvement of 14% from a net loss of KD6.0 million in the first quarter of 2020.
Financial and Operational Highlights
Q1 2021 Highlights: ● Operating revenue: KD8.1 million ● Operating loss: KD5.3 million ● Net loss: KD5.2 million, up 14% from Q1 2020 ● Passengers: 104.1 thousand ● Yield: KD74.9, up 105.2% |
Commenting on the results, Jazeera Airways Chairman, Marwan Boodai said: “While restrictions continued at Kuwait International Airport during the quarter, Jazeera focused on connecting flights, targeting underserved segments of passengers within its network, which accounted for 28% of total passengers. The airline also launched two new destinations and acquired six new traffic rights as it prepares to launch new routes in the summer season. Overall, Jazeera acquired the largest market share at KWI during the month of March despite limited capacity.”
New Routes and Travel Rights
Jazeera grabbed a 25% market share of all passengers flown through Kuwait International Airport, and launched two new routes to Colombo, Sri Lanka, and Addis Ababa, Ethiopia. These routes serve a resilient demand for travel by expatriates in the region.
The airline also took delivery of its sixth Airbus A320neo aircraft, as part of a scheduled order of four A320neo to be delivered this year.
Commercial flights from 35 countries continue to be suspended at Kuwait International Airport, while arrival capacity at the airport has been limited to only 1,000 Kuwaiti nationals per day since February 7, 2021.
Readiness for Return of Travel Demand
As the rollout of the vaccination accelerates in Kuwait and worldwide, restrictions at KWI will be lifted slowly in the next three quarters. This will encourage more people to travel and demand is expected to return gradually.
Jazeera pilots, cabin crew and supporting teams have already been vaccinated as part of the airline’s commitment to the safety of passengers and crews since the beginning of the Covid-19 pandemic in 2020.
The airline is also prepared to conduct PCR tests at Jazeera Terminal 5 (T5) upon arrival and is working closely with authorities to ensure its readiness to integrate systems related to vaccinations and PCR test results with the IATA Travel Pass.
Boodai concluded: “As we take the next step, Jazeera is equipped with a strong financial position and an experienced team that continues to deliver excellence and a fast turnaround in challenging circumstances and in every aspect of our business. The airline has a solid portfolio of travel rights, an efficient fleet and a network that connects passengers from point to point.
“Our outlook on demand for travel remains positive and we expect a recovery starting from the last quarter of the year. It is a matter of time as vaccines are administered. Safety measures will continue to be mandated by our airline and at T5 to ensure a safe return to travel.”