Jazeera 1H profit up nearly 22%

Jazeera Airways A320. Courtesy, Airbus

Kuwait-based Jazeera Airways Group recorded a half-year net profit of KD3.8 million ($13.5 million), up 21.8% year-over-year, despite continuing unrest in the region. Operating revenue was up 11.8% at KD28.3 million.

The Group—made up of Jazeera Airways (J9) and leasing arm Sahaab—gave few individual financial details, although Group CFO Donald Hubbard said J9 contributed 34% of the Group’s KD6.4 million operating profit and Group chairman Marwan Boodai said Sahaab was producing steady revenues and cash flows.

The lessor has a fleet of 15 Airbus A320s, with 12 delivered and placed with J9, Virgin America and Sri Lankan. Sahaab’s remaining three aircraft will be delivered in 2013-14.

J9’s load factor remains in the 60%-70% bracket, but Boodai said during webcast that yield was more important than passenger numbers: “We’ve proved we can be profitable at load factors in the low 60s,” he said.

He said fuel costs and the protracted civil war in Syria were the main problems affecting passenger numbers. The Syrian situation was also affecting flights to Lebanon, while the important route to the Egyptian capital, Cairo, was still only “moderate.”

However, he said he remained positive in his outlook for the carrier, with higher demand anticipated in the summer high season: “I’m confident we’ll achieve double-digit growth for the year.”

source: atwonline.com