Kuwaiti airline has first half net profit of KD3.3m
Kuwait’s Jazeera Airways has recorded a second quarter net profit of KD2.2m ($8m), compared to a KD4.7m net loss recorded in the second quarter of 2010.
The airline also carried a total of 299,321 passengers during the second quarter.
The results mean Jazeera Airways has achieved a net profit of KD3.3m during the first six months of 2011, compared to a net loss of KD9.2m in the first half of 2010.
“Our continued record performance is a direct result of the business-enhancement measures we’ve put in place since mid-2010 as part of the turn-around plan,” says Marwan Boodai, chairman of Jazeera Airways Group.
Jazeera Airways Group comprises an aircraft leasing business with assets across the world, as well as its commercial airline business which serves 18 destinations in the Middle East.
The five most profitable routes in the first half of 2011, include Deir al-Zour and Aleppo in Syria, Luxor and Assiut in Egypt and Damascus.
Prior to 2009, Jazeera Airways had been profitable since its inception in 2005. In 2009, it suffered a net loss due to the overcapacity in the market. The turn-around plan was implemented in May 2010 to get the company back to profitability (MEED 16:2:10).
The plan involves asset redeployment, staff reductions, cost management, network and market realignment and enhanced commercial offering.
The strategy led to the improved profits in the third and fourth quarters of 2010, which was the first time that it had closed two consecutive quarters with positive results.
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