Kuwaiti airline announces Q3 2017 financial results

KUWAIT: Jazeera Airways KSC (Jazeera) yesterday announced its financial results for the third quarter. The company reported an operating profit of KD8.3 million, up 37.8 percent from the same period last year, and a net profit of KD8.2 million, reflecting a growth of 35.6 percent, despite a 25 percent increase in fuel costs during for the year. Jazeera’s double digit growth for two quarters in-a-row was driven by new route launches, a healthy summer season, investments in customer experience, and robust cost management.

Q3 2017 Financial and Operational Highlights

Operating revenue: KD21.9 million, up 16.8 percent from Q3 2016
Operating result: KD8.3 million, up 37.8 percent from Q3 2016
Net result: KD8.2 million, up 35.6 percent from Q3 2016
Load factor: 80 percent, up 13.4 percent from Q3 2016
9M/YTD 2017 Financial and Operational Highlights
Operating revenue: KD46.0 million, up 5.9 percent from YTD 2016
Operating result: KD9.5 million, up 0.4 percent from YTD 2016

Net result: KD9.5 million, down 20.3 percent from YTD 2016 (9M/YTD 2016 net results included a one-off KD 2.4 million transfers from foreign currency translation reserve that were reclassified to Statement of Income)
Load factor: 75.5 percent, up 5.5 percent from YTD 2016

Jazeera Airways Chairman Marwan Boodai said, “Over the last two years we’ve invested heavily into initiatives to enhance and streamline our customers’ experience, both on ground and in the air. Today, with our second consecutive quarter of double digit growth we are beginning to see the positive returns of these investments on our bottom line. On the network front, the next two quarters are equally exciting. We’re launching five new destinations in November and December, while we continue to develop our exclusive terminal at Kuwait International Airport to accept its first passenger in Q1, 2018. Our outlook for the last quarter of the year is in line with historic Q4 trends for the regional travel sector, when we typically see demand picking up towards the second half of December”.