Jazeera Airways reports KD15.4 million in net profit for 2015
Jazeera Airways released its full-year financial results for 2015. The company recorded a net profit of KD15.4 million and an operating profit of KD13.6 million, reflecting a 2% increase from last year. The board of directors has recommended a 15% cash dividend totalling KD3 million.
Full-year results highlights:
● Operating revenue: KD58.6 million
● Operating profit: KD13.6 million, up 2% from the previous year
● Net profit: KD15.4 million
● Passengers: up 4.5%
● On-time Performance: 94.3%
Jazeera Airways chairman, Marwan Boodai, said: “I’m pleased to report that 2015 was another profitable year for Jazeera Airways, and a transformational one too. We successfully readjusted the airline’s capital to match its size, issued record shareholder payouts worth KD52.7 million in cash, and settled all debts. Today, the company is debt-free, with over KD30.9 million in cash and a growing profitable business. The company’s balance sheet has never been as strong as it is today.”
Jazeera Airways started the year by announcing a divestment of its fully-owned leasing business, which had accounted for less than 20% of its net profit in 2014, by selling its fleet of 15 Airbus A320s for USD507 million. The sale led to a board recommendation to adjust the company’s capital to match its current operation. On November 4, 2015, shareholders approved the recommendation to reduce the capital from KD42 million to KD20 million through a share buyback program of 220 million shares at the nominal share price of 100 fils.
This resulted in a KD22 million shareholder payout, which — when combined with payouts during the year — lifted total shareholder cash payouts during the year to a record payout of KD52.7 million. Earlier in the year, the company had issued cash dividends of KD20 million for the year 2014 and a payout of KD10.7 million in accumulated earnings and other reserves that were required by law to be distributed as part of the capital reduction process. This voluntary share buyback program was the first exercise of its kind in Kuwait and was based on the procedures stated in Kuwait's new Commercial Companies Law (97/2013).
2016 and beyond
In 2015 the company successfully exited the aircraft leasing business to focus on the airline business, issued a record shareholder payout, settled all loans, grew the operating profit, increased the net profit, and attracted more passengers despite the political and economic challenges the region faced. The year 2015 was transformational for the balance sheet, and 2016 will be the year this transformation extends to the product.
The Next Big Thing
The Next Big Thing is a series of new ambitious and game-changing initiatives that will boost Jazeera Airways’ offering, reinforce its brand, and attract and retain more customers. Below is a glimpse into the four new initiatives and how they will transform Jazeera Airways’ offering.
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. To be operational in Q3 2016, the facility is a single-stop remote check-in facility with valets for 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.
Business class with a view
Starting Q3 2016, Jazeera Airways business class travellers will enjoy exclusive access to what will be the newest lounge at Kuwait International Airport. The dedicated lounge will be the only lounge at Kuwait International Airport with a direct and unobstructed view of the tarmac. high-speed internet, comfortable seating, food, and drinks will also be offered to business travelers.
In-flight broadband at down-to-earth rates
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 travellers will have the opportunity to live stream their favourite 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 offering 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 travellers on the one hand and on the other hand, it would help relieve the congestion at the country’s single-terminal airport.