Jazeera posts $4.4m Q2 loss
Kuwait, August 13, 2009
Kuwaiti low-cost carrier Jazeera Airways has made a loss of KD1.26 million ($4.39 million) in the second quarter, following a restructuring of its network.
'The restructuring of the network from a dual hub to a single hub operation has briefly impacted revenues in Q2,' said chief executive Stefan Pichler.
Jazeera posted a net loss of KD897,895 in the second quarter of 2008.
Net loss in the first half of the year came in at KD2.2 million, Jazeera said in the statement.
The airline, which started operations in 2005, said revenues in the first half came in at 20 million dinars, without giving comparative figures.
In May, Jazeera's chairman Marwan Boodai told Reuters he hoped the carrier's 2009 results would exceed the KD4.45 million of net profit it posted in 2008.
Jazeera, which aims to fly 82 routes in the Middle East within the next five years, competes with UAE-based Air Arabia and Dubai-based carrier flydubai which started operations this year.
On Saturday, Air Arabia, the Middle East's largest low-cost carrier, posted a 10 percent rise in second-quarter net profit to KD90 million ($24.51 million).
Shares of Jazeera were flat on Thursday at KD0.250, as Kuwait's main index rose 0.8 per cent. Earnings were announced after trading hours. – Reuters