Jazeera Airways profits up 94%

15 March 2009

Budget airline Jazeera Airways has reported a 40% increase in operating revenues to almost KD49m and 94% increase in net profit to KD4.5m for year end 2008. As well as through increasing its yield, the results were boosted by the airline's decision to deleverage its risk by selling and leasing back aircraft to Sahaab Leasing, part owned by Jazeera. Chairman Marwan Boodai said by doing so, the airline had 'strengthened [its] balance sheet at exactly the right time, considering the current credit crisis'. Fuel costs accounted for 40% of revenues, up from 32%, as oil prices rocketed during the year. Jazeera, which operates out of Kuwait and Dubai, has set a target of 51% increase in passenger traffic for 2009.

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