Jazeera Airways Reports Q4 and FY 2023 Results

-       Net profit for FY 2023 at KD 6.13 million 

-       Passenger numbers up to a record 4.68 million, 30.6% more than last year

-       Load factor increased from 77% to 78.2%

Kuwait, 6 February 2024: 

Jazeera Airways reported KD 6.13 million in net profit for the full year 2023. Operating revenues were at KD 198.08 million with an 8.8% increase compared to 2022 while operating profits were at KD 11.76 million. Passenger numbers increased by 30.6% from 3.6 million to 4.68 million. Load factor grew from 77% to 78.2% while yield declined from KD 47.96 to KD 39.63. However, market share for the airline increased to 36.24% in Kuwait. 

At Jazeera Terminal 5, which is owned and managed by Jazeera Airways, the retail lease revenue grew by 51% to KD 1.54 million for 2023. Duty Free revenues increased by 1% to KD 1.3 million. 

Q4 2023 Results

Jazeera recorded a net loss of KD 7.14 million. The company’s operating revenue for the fourth quarter was at KD 39.18 million. Passenger numbers were 17.3% higher at 1.15 million with load factor at 75.8% and average utilization up by 2.2% to 12.7 hours compared to the same quarter last year.

The company distributed 28 fils per share in cash dividends for the first half of 2023. For the second half of 2023, the Board of Directors of Jazeera Airways have made a recommendation not to distribute any further dividends.  

Financial Highlights

Marwan Boodai, Chairman, Jazeera Airways, said: “In 2022, we earned record profits that were driven by a huge demand for travel, lesser capacity and a one-time gain from selling and leasing back of engines. For 2023, we emerged profitable despite lower yields, influenced by overcapacity amid a challenging regulatory, geopolitical, and regional landscape. Higher load factors and greater market share put Jazeera Airways in a strong position while we continued to maintain a fanatical focus on unit cost. This is a strong demonstration of our robust and resilient business model as well as the quality of service we provide. We continue to remain unwavering in our commitment to grow and enhance our operations, provide quality service to our customers, and to further strengthen our foundation for success in the coming year 2024.”   

2023 Operational Review

In 2023, Jazeera Airways added 10 new routes to serve a total of 64 destinations across the Middle East, Central & South Asia, Europe, and Africa. The new destinations included Moscow, Samarkand, Larnaca, Sphinx (Cairo), Shiraz, Tivat, Belgrade, Tirana, Islamabad, and Tehran. 

The airline also took delivery of three additional aircraft, further expanding its fleet to 23. By opening its own wheels, brakes and battery shop, Jazeera in-sourced related services to save both time and cost. The airline also invested in over 2,000 of the world’s lightest airplane seats. Once in service, these seats are anticipated to offer a substantial weight saving of 1.2 metric tons resulting in reduced jet fuel consumption and increased passenger capacity with an additional row of seats. 

Remaining committed to its net zero by 2050 objectives, Jazeera published its first ESG sustainability report and became the first low-cost carrier in the Middle East to switch from plastic to eco-friendly food service ware in-flight. 

At the Jazeera Terminal 5, several new enhancements were made to make the passenger experience smoother. These included new gates and check-in counters, changing rooms, a duty-free shop, and restaurants.  

Jazeera Airways also ranked in Best Workplaces in Asia list based on an employee survey conducted by Great Place to Work. The airline also featured on the first Fortune 500 Arabia list published in the last year. 

Positive Outlook

Jazeera Airways continues to remain unwavering in its approach to future growth. In the next five years, the airline is expected to serve over 100 destinations and increase its fleet size to 35 aircraft. Load factor is also anticipated to cross 80% in the next three years.   

A new hangar is in the process of construction to handle higher level maintenance checks. This is targeted for completion by 2025. Several other expansions are also in the pipeline to cater to the growing number of passengers in the coming future.