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In a webcast attended by local and international analysts, Jazeera Airways Group today announced a record net profit of KD3.9 million for the second quarter of 2013, making the first half of 2013 the airline’s most profitable first half in history. The company had previously announced a record net profit of KD3.6 million for the first quarter.
Jazeera Airways Group’s record H1 earnings bolster the company’s track-record of 12 straight quarters of profitability. The company witnessed record profitability in 11 of 12 quarters.
H1 2013 Highlights
Revenue: KD30.8 million, up 9% from H1 2012
Operating profit: KD9.5 million, up 48% from H1 2012
Net profit: KD7.5 million, up 95% from H1 2012
Flown passengers: up 4.1% from H1 2012
Load factor: 70%, up 11.9% from H1 2012
*Percentages shown are calculated based on the absolute results, not the displayed rounded figures.
H1 2013 Balance Sheet
Hard assets of KD145 million
Cash reserves of KD47 million, exceeding equity
Equity improved by KD37 million since Q2 2012
Jazeera Airways Group Chairman, Marwan Boodai, said, “We started the year with the objective of building on last year’s momentum, and we’ve been successful so far as reflected in the first half financial, operational, and commercial results. We’ve carried more passengers than the same period of last year, with the average load factor exceeding targets while maintaining operational excellence. All together, this culminated in the impressive H1 results that were announced today. Our job is far from over and the team is working hard on closing yet another record-breaking year.”
Jazeera Airways operated the first half of the year with an average load factor of 70% and carried 4.1% more passengers than the same period last year.
Mid-year review and outlook
In the last six months, Jazeera Airways Group secured funding for the three remaining aircraft on an order of 15 A320s. The structured loan was led by Kuwait’s NBK and DVB Bank SE. As a result of the loan, the company has secured its financial commitments for the next two years.
In June, Jazeera Airways Group received a brand new Airbus A320 from the manufacturer. To date, Jazeera Airways Group has taken delivery of 13 Airbus A320s since 2005, as part of an order for 15 aircraft of the same type. The remaining two aircraft of the order are scheduled to be delivered in October 2013 and May 2014.
Also in June, the Kuwait Stock Exchange (KSE) inducted Jazeera Airways into the ‘Kuwait 15 index KSX15’ - an index of the 15 top performers on the KSE. The KSX15 is defined by the KSE as their "flagship index ... designed to be a bellwether indicator of the Kuwaiti economy and to track the performance of the Kuwait stock market".
On the aircraft leasing side, the Group’s 100% owned aircraft leasing subsidiary placed an Airbus A320 aircraft with Saudi Arabia-based NAS airlines. Sahaab Aircraft Leasing also has assets placed with Virgin America, SriLankan Airlines, and Jazeera Airways.
The company’s outlook for the rest of 2013 continues to be positive in-line with a growing Kuwaiti economy, which continues to witness higher incomes despite international and regional economic pressures. The company’s forecasts remain unchanged for the rest of the year. Jazeera Airways Group expects a seasonal increase in demand in the third quarter, and a mild fourth quarter.
Established in 2005, Jazeera Airways Group is a Kuwait Stock Exchange-listed company with a fleet of 13 fully-owned Airbus A320s, distributed between its airline business, Jazeera Airways (seven aircraft), and its fully-owned leasing-arm Sahaab Aircraft Leasing (six aircraft).
Jazeera Airways is based in Kuwait and operates a network comprising high-demand business, leisure, family, and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria, Amman, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Cairo and Al Najaf.
Jazeera Airways is an IATA-member airline and operates one of the youngest Airbus A320 fleets in the Middle East.