Jazeera Airways’ plan to raise capital by 91 per cent through a rights issue has been approved, the Kuwait-based private airline said on 25 August.

The plan was endorsed by an Emiri decree, a mandatory step in Kuwait for companies operating in sectors that are deemed to be of ‘national interest’.

Jazeera Airways will raise capital to KD42m ($149m) through a rights issue of 200 million shares to existing shareholders at a nominal value of 100 fils a share.

The rights issue is likely to take place in the fourth quarter of this year.

In July, Jazeera Airways announced a record profit of KD3.8m in first half of 2012, up 21.6 per cent from the same period last year. In 2011, the airline reported a profit of KD3.3m during the first six months of 2011, compared with a net loss of KD9.2m in the first half of 2010.

In May 2010, the airline undertook a turnaround plan to get the company back to profitability.