Q1 Net Profit Rises By 33 Percent - Kuwait's Jazeera

Kuwait-based Jazeera Airways has announced a 33 percent rise in net profit to KD 4 million ($13.2 million) for the first quarter of 2016 compared to the year-earlier period. The airline said in a statement that operating revenue fells nearly 8 percent to KD11.9 million for the same period while passenger numbers rose by 5.1 percent and load factor increased by 2.4 percent.

Jazeera Airways chairman, Marwan Boodai, said: "We've had a busy and exciting quarter as we lay the ground-work for the growth and expansion of our offering in 2016 and beyond. Soon we will start flights to Taif, our third destination in Saudi Arabia, with the first flight scheduled for June 7."

He added: "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 the peak summer season and close the year with growth in our operational profits and our bottom line."

In February, Jazeera launched its The Next Big Thing strategy, and Boodai said the airline on track to deliver, starting with the dedicated business class at Kuwait International Airport and the remote check-in and long-term parking facility.

Both initiatives are in development and are set to launch in the third quarter of this year. Starting Q1 2017, Jazeera Airways' fleet will also be equipped with broadband internet technology, he said.

Jazeera Airways also said it 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 confirmed the new routes will be non-stop and offered through a partnership with a global airline.

The airline is also in an advanced planning stage to establish a dedicated terminal at Kuwait International Airport as part of its strategy.

 

SOURCE : ARABIANBUSINESS

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