Aviation firm posts 35% slump in net profit in first six months but still second best H1 figures
Rising fuels costs and forced rerouting of flights due to unrest in the Middle East dented the net profits of Kuwait's Jazeera Airways Group in the first half of 2014.
Net profit fell to KD4.9 million ($17.3 million) for the first six months of the year, down nearly 35 percent compared to the same period in 2013.
The aviation group said operating revenue also dropped to KD29.3 million, down 4.9 percent from H1 2013.
Jazeera Airways Group chairman, Marwan Boodai, said: "The Group's performance in the year's first two quarters continues to be in line with our projections, and though the earnings were lower than last year's exceptional results due to external factors such as a 10 percent rise in fuel cost and flight re-routing due to regional unrest, the earnings were the second highest earnings in the company's history."
Boodai hailed the launch last month of four dedicated gates at Kuwait's international airport, making it the only airline in Kuwait with gates that are exclusive to its customers.
The dedicated gates are "strong product differentiators", he said in a statement.
In the first half of the year, Jazeera Airways upgraded its Istanbul route by operating to and from the city's primary airport, Istanbul Atatürk Airport and also increased flights to Al Maktoum International Airport at Dubai World Central to daily flights.
Jazeera Airways serves 20 destinations in the Middle East from Kuwait including Dubai, Bahrain, Beirut, Alexandria, Amman, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Cairo and Al Najaf.