Jazeera Airways has achieved a net profit of KD2.3 million for the first quarter (Q1) of 2023, compared to KD 3.8 million in the first quarter of 2022, when the strong demand post-pandemic was reflected in higher fares. Total revenue for the quarter reached KD48.3 million, up 35.2%, while operating profit was at KD3.62 million.
Passenger traffic rose by 56.6% to 1.1 million in this quarter and load factor reached 82.1% with an increase of 6.9% compared to the Q1 2022.
Announcing the results, Marwan Boodai, Chairman, Jazeera Airways said: “2023 has started off on a positive note for Jazeera Airways. Despite fuel prices putting pressure on margins for the first quarter, a continued focus on operating costs enabled us to deliver profits in line with our aggressive growth targets and on the track to be a fantastic year. Load factor in this quarter reached 82.1%, the highest ever for Jazeera in any quarter, especially for Q1 which is typically not the strongest. This demonstrates the strength of our business model and sound validation from our customers.”
Financial and Operational Highlights
| Q1 2023 Highlights: |
● Operating revenue: KD48.3 million, up 35.2% from Q1 2022
● Operating profit: KD3.62 million, down 31.3% from Q1 2022*
● Net profit: KD2.3 million, down 39.7% from Q1 2022*
● Passengers: 1.1 million, up 56.6% from Q1 2022/
● Load factor: 82.1%, up 6.9%
● Yield: KD41.1, down 13.6%
*Post Covid-19 effect
First Quarter 2023 Review
Jazeera Airways launched direct flights in February from Kuwait to Moscow, the first airline to fly the route. In March, the airline also started flying to Samarkand, its third destination in Uzbekistan following Tashkent and Namangan. New destinations have been announced for Q2 including Larnaca, Cyprus, Belgrade, Serbia and Tirana, Albania. In addition, the airline also announced the resumption of its flights to Prague, Czech Republic and Sarajevo, Bosnia and Herzegovina in the summer months.
The Jazeera T5 terminal, was under refurbishment with three new restaurants opening for travellers – two on landside and one airside, operational since February.
Over the next few months of this financial year, Jazeera will welcome four additional aircraft into its fleet. Following an “Approved Training Organization” certification from the Kuwait’s Directorate General of Civil Aviation (DGCA) last year, Jazeera Airways placed an order for an Airbus simulator. Expected to be delivered by the end of 2023, this simulator will enable in-house pilot training and monitoring to ensure the highest levels of safety for both crew and passengers.
The airline also intends to collaborate with a European Union Aviation Safety Agency (EASA) approved training organization to launch our own Multi-Pilot License (MPL) program.