Business, Thursday, Nov 8, 2018 | Safar 30,1440
Kuwait's Jazeera Airways sees profits drop after fuel bill rises
Kuwait-based Jazeera Airways on Wednesday announced an 11.2 percent drop in net
profit to KD8.5 million for the first nine months of 2018, despite a 38.4
percent growth in operating revenue.
The airline also reported a 44.5 percent growth in
number of passengers to 1.5 million in comparison to the same period last year.
Load factor was 76.8 percent, up from 75.5 percent
in the nine-month period in 2017.
The airline also reported a 14.1 percent drop in
Q3 net profit while operating revenue rose by 31.7 percent compared to the
Jazeera Airways chairman, Marwan Boodai, said:
“Operationally, fuel prices continued to increase in Q3, rising by 35 percent
from Q3 2017, and the competitive landscape remained strong. However, despite
these challenges, our investments in expanding our offering and network
continued to yield positive results.
“We ended the third quarter with zero debt. We
tapped into a new segment of customers by launching new destinations to the
Indian subcontinent, Tbilisi and Medinah, all while enhancing the travel
experience through our dedicated terminal at Kuwait International Airport, the
first passenger terminal owned by an airline in the Middle East.”
The new dedicated terminal has carried 795,218
passengers since its inauguration while the Duty Free operations began last
Boodai added: “In the last quarter of the year,
demand is expected to pick up during the end of year seasonal holidays in line
with travel trends. Jazeera Airways also prepares to launch a new route ahead of
the travel season, serving the Indian capital, New Delhi, while new retails
offerings continue to open at our dedicated terminal.”
Jazeera Airways flies to 26 destinations across
the Middle East, India and Europe and operates a fleet of Airbus A320s and an