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Thu 12 Nov 2009 05:15 PM

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Jazeera Airways Q3 profit down 53% on revamp

Kuwaiti low-cost carrier says performance improving after restructuring.

Kuwaiti low cost carrier
Jazeera Airways

on Thursday posted a 53 percent fall in third quarter profit and said its performance was improving after being hit by restructuring.

Profit in the three months ended September 30 fell to KD762,745 ($2.67 million) from KD1.6 million the year before, on revenue that grew 4 percent to KD15.9 million.

“Our performance is picking up again following the expected impact from the restructuring of our network from a dual hub operation to a single hub operation earlier in the year,” chief executive Stefan Pichler said.

“The re-alignment of our network and some product enhancements, such as the launch of our new

business class, has yielded profitability in this quarter.”

Jazeera Airways

said the number of passengers it carried in the quarter increased 65 percent to 582,490.

The Kuwait-based airline pulled out of Dubai International Airport earlier this year but has said it aims to set up a second hub outside the Gulf.

According to Reuters,

, which aims to fly 82 routes in the Middle East within the next five years, competes with UAE-based
Air Arabia

and Dubai-based carrier flydubai which started operations this year.

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Fuad 10 years ago

Its a shame that Jazeera had to take a beating due to good old Arab politics. I've been following on Jazeera for some time now, almost bought shares if it weren't for the crisis that killed my liquidity. This is an airline that got many things right and they were moving on up until Dubai decided to pull the rug from under their feet. I'm glad to see them getting back up again. That's when you know you have a strong business model, when you still bounce back up even when non-market circumstances punch you in the face.