Kuwait – MENA Herald: Jazeera Airways today announced its second quarter financial results, reporting Q2 operating revenues of KD24.7 million and a net profit of KD2.0 million, bringing the company’s year-to-date net profit to KD6.0 million.
Jazeera Airways Chairman, Marwan Boodai, said: “We are pleased to report another strong quarter on the back of higher passenger numbers, in terms of both volume and load factor. We closed the year with a load factor of 72.4%, which is a full 10% higher than our peers’ average load factor on the routes we operate. That’s not to say it wasn’t a challenging quarter, we saw more capacity being dumped on our routes, rising fuel costs, and an expected shift of the summer season as most of Ramadan has now moved into Q2, thus shifting revenue and travel trends and slightly impacting our earnings.”
Our outlook for the year remains unchanged and in line with our sector’s seasonality. While the excessive overcapacity on the sectors we operate poses a downward pressure on our yields, we expect to counter this pressure in Q3, which only had 5 days of Ramadan, and close the year with growth in our operational profits and our bottom line.”
H1 2016 Financial Highlights:
Operating revenue: KD24.7 million, less 7.3% from H1 2015
Net profit: KD6.0 million, less 3.0% from H1 2015
Passengers: up 3.2% from H1 2015
Load factor: up 3.2% from H1 2015
On-time performance: 90.1%
Q2 2016 Financial Highlights:
Operating revenue: KD12.8 million, less 6.9% from Q2 2015
Net profit: KD2.0 million, less 38.1% from Q2 2015
H1 2016 Review
In February, Jazeera Airways launched a major product enhancement program to boost customer experience through various on-ground and in-flight initiatives. The program, titled ‘The Next Big Thing’, includes a dedicated remote check-in and long-term parking facility, in-flight broadband service, a dedicated terminal at Kuwait International Airport, and a dedicated business class lounge at Kuwait International Airport.
In June, the company launched flights to the city of Taif, its third destination in the Kingdom of Saudi Arabia with three flights a week.
In July, Jazeera Airways was officially notified that its request to be allocated land at Kuwait International Airport to build a dedicated terminal was approved by the Kuwait Council of Ministers. The terminal is a solution proposed by the airline to help ease the congestion at Kuwait International Airport, the country’s only primary airport, which is currently operating over capacity. The project’s investment value is KD14 million, and its total construction time frame is 15 months, including the permits acquisitions phase.
In July, Jazeera Airways launched a dedicated business class lounge at Kuwait International Airport. The lounge is part of the ‘The Next Big Thing’ product development program launched by the airline. More on the ‘The Next Big Thing’ below.
The Next Big Thing
The Next Big Thing is a series of new ambitious and game-changing initiatives that will boost Jazeera Airways’ offering, reinforce its brand, and attract and retain more customers in 2016 and beyond. Below is a glimpse into the four new initiatives and how they will transform Jazeera Airways’ offering.
Remote check-in and long-term parking – under construction now
Jazeera Airways is constructing a state-of-the-art check-in facility located two minutes away from the airport to serve as a second option for flight check-in. Operational by end of 2016, the facility is a single-stop remote check-in facility with valets for both short-term and long-term parking and luggage assistance. Once travelers and their luggage are checked in, they will be shuttled to the terminal where they can proceed directly to passport control, thus completely bypassing the hassle of navigating Kuwait International Airport’s parking and check-in congestion.
Exclusive Business Class lounge with a view – launched July 2016
Starting Q3 2016, Jazeera Airways Business Class travelers now enjoy an exclusive access to newest lounge at Kuwait International Airport, and the only lounge at the airport with a direct and unobstructed view of the tarmac. High-speed internet, comfortable seating, food, and drinks are offered at the lounge.
Starting Q1 2017, Jazeera Airways’ fleet will be equipped with cutting-edge broadband internet technology from Rockwell Collins, who have chosen Jazeera Airways to be the launch customer for this new service. In 2017 Jazeera Airways travelers will have the opportunity to live stream their favorite TV shows, movies, news, and sports on any personal device.
Jazeera Airways Long-Haul
Jazeera Airways is currently looking to expand its network to include key long-haul destinations by partnering with an international operator. Though still in its early stages, the airline confirms the new routes will be non-stop and offered through a true partnership with a global airline.
Jazeera Airways Terminal
The airline is in an advanced planning stage to establish a dedicated terminal at Kuwait International Airport, which will help Jazeera Airways better serve its travelers and help relieve the congestion at the country’s single-terminal airport.