Jazeera Airways' operating revenue hits $27m for Q1

  
Jazeera Airways aircraft at Kuwait International Airport.

Jazeera Airways aircraft at Kuwait International Airport.

Jazeera Airways / Handout via Zawya

Kuwaiti budget carrier Jazeera Airways has reported an operating revenue of KD8.1 million ($27 million) for the first quarter. The airline’s load factor stood at 58.4%, while yield increased by 105.2% to KD75 ($248.7 million).

Announcing the results for the three-month period ending March 31, Jazeera said the airline registered a net loss of KD5.2 million; an improvement of 14% from a net loss of KD6 million in the first quarter of 2020.

The number of passengers flown during the quarter reached 104,116, down from 496,484 in the first quarter of 2020, as restrictions continue at Kuwait International Airport. The airline’s load factor stood at 58.4%, while yield increased by 105.2% to KD74.9, it added.

On the results, Chairman Marwan Boodai said: "While restrictions continued at Kuwait International Airport during the quarter, Jazeera focused on connecting flights, targeting underserved segments of passengers within its network, which accounted for 28% of total passengers."

Jazeera, he stated, grabbed a 25% market share of all passengers flown through Kuwait International Airport and launched two new routes to Colombo (Sri Lanka) and Addis Ababa (Ethiopia). These routes serve a resilient demand for travel by expatriates in the region, he added.

Commercial flights from 35 countries continue to be suspended at Kuwait International Airport, while arrival capacity at the airport has been limited to only 1,000 Kuwaiti nationals per day since February 7.

As the rollout of the vaccination accelerates in Kuwait and worldwide, restrictions at KWI will be lifted slowly in the next three quarters. This will encourage more people to travel and demand is expected to return gradually.

Jazeera pilots, cabin crew and supporting teams have already been vaccinated as part of the airline’s commitment to the safety of passengers and crews since the beginning of the Covid-19 pandemic in 2020.

Boodai said the airline was also prepared to conduct PCR tests at Jazeera Terminal 5 (T5) upon arrival and was working closely with authorities to ensure its readiness to integrate systems related to vaccinations and PCR test results with the IATA Travel Pass.

"As we take the next step, Jazeera is equipped with a strong financial position and an experienced team that continues to deliver excellence and a fast turnaround in challenging circumstances and in every aspect of our business," he noted.

Boodai pointed out that the airline had a solid portfolio of travel rights, an efficient fleet and a network that connected passengers from point to point.

"Our outlook on demand for travel remains positive and we expect a recovery starting from the last quarter of the year. It is a matter of time as vaccines are administered. Safety measures will continue to be mandated by our airline and at T5 to ensure a safe return to travel," he added.

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