· Recovery outlook remains strong for Q4 and beyond
· Reports 9M 2021 net profit despite challenging operating environment
Kuwait, November 1, 2021: Jazeera Airways today reported a return to profitability in the third quarter of the year, registering KD11.8 million in net profit following an ease in travel restrictions and increase in vaccinations in Kuwait and throughout the airline’s network.
Number of passengers flown in Q3 increased by 361.8% to 302.9 thousand, while the load factor increased by 26.7% to 65.6% despite the restrictions that were still imposed on capacity at Kuwait International Airport during the quarter.
Revenue stood at KD31.7 million, up 421.7% from Q3 2020, and operating profit was KD12.8 million, up 332.2% from Q3 2020 with an operating margin of 40.5%.
For the nine months period of 2021, Jazeera returned to profitability during a very difficult year of operations in which Kuwait International Airport had very limited capacity for a period of five months. The company successfully offset previous losses to report a net profit of KD70.6 thousand supported by an increase in revenue by 44.2% to reach KD47.3 million during the nine months period.
Commenting on the results, Jazeera Airways Chairman, Marwan Boodai said: “Jazeera is returning to profitability earlier than our previous forecast for Q4, a positive sign for our airline which successfully mitigated the impact of the pandemic by implementing decisive measures to safeguard its financial position and liquidity, as well as to protect shareholders and customers’ rights.
“Our strong earnings in Q3 are attributed to an evident appetite for travel, as well as to new destinations launched by Jazeera by end of June, catering to that appetite. Despite continued limitations in the number of returning passengers at Kuwait International Airport until the end of the quarter, our load factor continued to increase as well as yield driven by limited supply.”
Financial and Operational Highlights
Q3 2021 Highlights:
● Revenue: KD31.7 million, up 421.7%
● Operating profit: KD12.8 million, up 332.2%
● Net profit: KD11.8 million, up 310.2%
● Passengers: 302.9 thousand, up 361.8%
● Yield: KD101.5, up 15.5%
● Load factor: 65.6%, up 26.7%
9M 2021 Highlights:
● Revenue: KD47.3 million, up 44.2%
● Operating profit: KD1.6 million, up 113.2%
● Net profit: KD70.6 thousand, up 100.5%
● Passengers: 511.1 thousand down 15.6%
● Yield: KD89.3, up 72.9%
● Load factor: 60.7% down 8.1%
Commenting on the airline’s performance, Jazeera Airways Chief Executive Officer, Rohit Ramachandran, said: “Jazeera’s flexible business model continues to prove its resilience against challenges and its strength in positively contributing to the business and economic environment by creating new jobs and trade opportunities for Kuwait. When airports around the world closed borders, Jazeera started operating full cargo flights. When aircraft stopped carrying passengers, we flew repatriated citizens back home. We are also supporting new jobs for pilots, engineers, cabin crew and local businesses.”
Jazeera launched eight new routes during the nine-month period of 2021, serving popular tourist and expat destinations that comprised Colombo (Sri Lanka), Addis Ababa (Ethiopia), Bishkek (Kyrgyzstan), Tashkent (Uzbekistan), Yerevan (Armenia), Antalya (Turkey) and Sarajevo (Bosnia and Herzegovina) in addition to London Heathrow airport as the first low-cost carrier (LCC) in the Middle East to operate direct flights to the airport.
The airline also rolled out its summer schedule with favorite destinations for tourists, such as the Lebanese capital, Beirut, and other popular summer destinations including Tbilisi (Georgia), Trabzon and Bodrum (Turkey).
Jazeera also took delivery of three Airbus A320neo aircraft during the year as part of an order for four A320neos to be delivered by the end of 2021, which will bring the fleet to 17 aircraft.
Jazeera Terminal T5 also returned to profit in 3Q2021 as more passengers flew during the quarter with a net profit of KD400.5 thousand compared to a net loss of KD567.1 thousand in the same quarter last year.
Positive Outlook for Q4 2021
Boodai concluded: “As our company succeeds to return into profitability as early as 3Q21, we remain positive and prudent of what’s yet to come. We are positive that travel will return stronger to reach 2019 operational performance very soon. We remain prudent to ensure our customers and employees always remain safe. We now believe the worst is behind us and that our team successfully triumphed against a global crisis and ensured the continuity and prosperity of the business. Next year will see further expansion of our growing network as the world pulls clear of the pandemic.”