Jazeera Airways Reports 2016 Financial Results

13.02.2017 Aviation
Jazeera Airways Reports 2016 Financial Results

Jazeera Airways Reports 2016 Financial Results

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Kuwait-based low-cost carrier Jazeera Airways recorded KD52.8 million ($172.7 million) in revenues for 2016, reflecting a 10% decrease from the previous year.

The airline also reported an operating profit of KD8.8 million during the year (down 35.3% from 2015), and a net profit of KD10.8 million (down 29.8%), making 2016 the company’s sixth consecutive year of profitability.

The Board of Directors has recommended a 35% cash dividend totaling KD7 million.

Passenger numbers were up 0.3%, while the posted an On-time Performance of 94%.

Jazeera Airways Chairman Marwan Boodai said: “I am pleased to report that the year 2016 was our sixth consecutive year of profitability, however the slowing macroeconomic environment and the continued oversupply of seats on our routes placed pressure on our yields, resulting in a 29.8% drop from last year while carrying slightly more travellers.”

“With six years of consecutive profitability and virtually no debt, our balance sheet remains strong and cash-rich, making it the healthiest balance sheet in our industry,” he added.

“Looking forward, we believe that with the recent investments in on-ground facilities that we’ve made - and launched in the second half of 2016- will attract more travellers in the quarters to come. Our new terminal, which we have announced earlier will differentiate our product and gradually counter the pressure on yields. The terminal is due to start welcoming travellers by year-end,” he concluded.

In 2016 Jazeera Airways broke new grounds by launching services that make the travel experience more efficient for travellers in Kuwait. The airline launched a remote check-in service called Park & Fly, the first in Kuwait, as well as a dedicated business lounge adjacent to its dedicated gates. The airline also upgraded the entire check-in experience for even faster service.

In 2017, the airline will continue to facilitate travellers’ check-in, boarding, departure, and arrival experience with the construction of a brand new state-of-the-art dedicated terminal that aims to make the airport experience even more efficient for travellers flying in and out of the airport.

The new Jazeera Airways Terminal building will incorporate smart technology tasked with providing a seamless, congestion-free, check-in process. The automated building will also connect to travellers’ devices as soon as they arrive to the terminal and offer immediate assistance such as updating their flight status and navigation to their gate.

Established in 2005, Jazeera Airways is a Kuwait Stock Exchange-listed company serving popular destinations in the Middle East. The airline operates a fleet of Airbus A320 aircrafts with two class cabins comprising a Business Class and an Economy Class.

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