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Jazeera Airways H1 net profit slips 3pc

KUWAIT, August 1, 2016

Kuwait-based Jazeera Airways reported a net profit of KD6 million ($19.7 million) for the first half of the year, down 3 per cent from the same period in 2015.

Operating revenues for H1 also showed a drop of 7.3 per cent from H1 2015, posting KD24.7 million ($81.3 million) for the period January to June.

The airline also posted results for its second quarter, recording a net profit of KD2 million ($6.5 million), down 38.1 per cent compared to Q2 2015, and operating profit of KD12.8 million ($42.1 million), down 6.9 per cent from Q2 2015.

However, Jazeera Airways posted positive results across three other key performance indicators in H1 with passenger numbers going up 3.2 per cent from H1 2015; Load factor up 3.2 per cent from H1 2015; and on-time performance reaching 90.1 per cent.

Jazeera Airways chairman Marwan Boodai said: “We closed the year with a load factor of 72.4 per cent, which is a full 10 per cent higher than our peers’ average load factor on the routes we operate. That’s not to say it wasn’t a challenging quarter, we saw more capacity being dumped on our routes, rising fuel costs, and an expected shift of the summer season as most of Ramadan has now moved into Q2, thus shifting revenue and travel trends and slightly impacting our earnings.”  

Our outlook for the year remains unchanged and in line with our sector’s seasonality. While the excessive overcapacity on the sectors we operate poses a downward pressure on our yields, we expect to counter this pressure in Q3, which only had five days of Ramadan, and close the year with growth in our operational profits and our bottom line.”

In February, Jazeera Airways launched a major product enhancement program to boost customer experience through various on-ground and in-flight initiatives. The program, titled ‘The Next Big Thing’, includes the following:

Remote check-in and long-term parking - under construction now
Jazeera Airways is constructing a state-of-the-art check-in facility located two minutes away from the airport to serve as a second option for flight check-in. Operational by end of 2016, the facility is a single-stop remote check-in facility with valets for both short-term and long-term parking and luggage assistance. Once travelers and their luggage are checked in, they will be shuttled to the terminal where they can proceed directly to passport control, thus completely bypassing the hassle of navigating Kuwait International Airport's parking and check-in congestion.

Exclusive Business Class lounge with a view - launched July 2016
Starting Q3 2016, Jazeera Airways Business Class travelers now enjoy an exclusive access to newest lounge at Kuwait International Airport, and the only lounge at the airport with a direct and unobstructed view of the tarmac. High-speed internet, comfortable seating, food, and drinks are offered at the lounge.

In-flight broadband
Starting Q1 2017, Jazeera Airways’ fleet will be equipped with cutting-edge broadband internet technology from Rockwell Collins, who have chosen Jazeera Airways to be the launch customer for this new service. In 2017 Jazeera Airways travelers will have the opportunity to live stream their favorite TV shows, movies, news, and sports on any personal device.

Jazeera Airways Long-Haul
Jazeera Airways is currently looking to expand its network to include key long-haul destinations by partnering with an international operator. Though still in its early stages, the airline confirms  the new routes will be non-stop and offered through a true partnership with a global airline.

Jazeera Airways Terminal
The airline is in an advanced planning stage to establish a dedicated terminal at Kuwait International Airport, which will help Jazeera Airways better serve its travelers and help relieve the congestion at the country’s single-terminal airport. - TradeArabia News Service




Tags: | Kuwait | Airways | Jazeera | Q2 |

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