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Jazeera Airways triples first quarter net profit

Posted 26 April 2013 · Add Comment

Kuwait-based Jazeera Airways Group announced in a webcast that its first quarter net profit of $12.6 million has more than tripled, compared to the year-ago.

Group chairman Marwan Boodai said: “These exceptional results were generated by our airline business, which saw an increase in passenger loads and a full recovery from the three Syrian destinations that were suspended by Q4 2012.”

He added that business was being buoyed by the booming Kuwaiti economy, where people have increasing levels of disposable income and the government is pushing forward with many infrastructure projects.

CFO Don Hubbard said first-quarter financing costs for the group, which consists of Jazeera Airways and the Sahaab leasing arm, were down 26% compared to the same period last year due to debt restructuring and an oversubscribed rights issue at the end of 2012 that raised $62 million.

Boodai said Jazeera’s first-quarter load factor was 70%; it is profitable when load factor is in the low-60s range.

Established in 2005, Jazeera Airways Group has a fleet of 12 fully-owned Airbus A320s; Jazeera Airways uses seven and five go to Sahaab Aircraft Leasing, which has assets placed with Virgin America, SriLankan Airlines, and Jazeera Airways.

Two further A320s are due to arrive this year, plus another in 2014. One will be put into service with the airline over the high-demand summer season.

Boodai said Jazeera expects to go back to manufacturers around the fourth-quarter of 2014 to acquire more aircraft for delivery in 2017. He did not say what was on Jazeera’s shopping list.

 

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