Jazeera Airways Group on Tuesday announced that it has secured a $18.3 million aircraft refinancing facility through Arab Banking Corporation (ABC).
The Kuwaiti airline said it will use the proceeds to close an existing facility through the French corporate and investment bank, Natixis, resulting in a reduction of the company’s debt financing charges.
Jazeera Airways Group chairman, Marwan Boodai, said: “The improving debt markets have given us the opportunity to lower our cost of debt, enabling us to deploy an even better capital structure and a stronger balance sheet to support the Group’s operations and strategic growth prospects.”
The $18.3 million refinance facility through ABC has a five-year term.
Jazeera Airways Group is a Kuwait Stock Exchange-listed company with a fleet of 15 Airbus A320s.
In April, Jazeera Airways said it is in the final stages of launching a dedicated gates facility at Kuwait International Airport.
The airline said that its investment in Kuwait Airport will lift the airport's gates capacity by 30 percent and will offer a "better, easier, and more streamlined boarding experience for customers".
The move comes as the carrier announced that its first quarter net profit fell 41.8 percent to KD2.1 million compared to the same period last year. Revenue at KD13.8 million fell by 6.1 percent.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.