By Staff writer
Carrier says it made just under $20m net profit in third quarter as low oil prices put pressure on yields
Kuwait-based Jazeera Airways has announced its third quarter financial results, reporting a net profit of KD6 million ($19.7 million), bringing the company’s year-to-date net profit to KD12 million.
The airline said Q3 net profit fell by more than 27 percent on operating revenues of KD18.8 million, which were down by 10.6 percent on the year-earlier period.
Jazeera Airways chairman Marwan Boodai said: “Our earnings for the quarter came in less than expected even though we carried more passengers and we lifted our load factor, however the pressure on yields due to low oil prices and a host of other factors continued through the third quarter.
"With that said, our product development program is expected to boost our ancillary income and our overall differentiation factors once completed by next year.”
For the first nine months of 2016, Jazeera Airways reported operating revenue of KD43.5 million, down 8.8 percent and net profit of KD12 million, down 9.7 percent although passenger numbers were up 2.6 percent.
In February, Jazeera Airways launched a major product enhancement program to boost customer experience through various on-ground and in-flight initiatives. The program, titled The Next Big Thing, includes a dedicated remote check-in and long-term parking facility, in-flight broadband service, and a dedicated terminal and business class lounge at Kuwait International Airport.
The airline is currently looking to expand its network to include key long-haul destinations. Although still in its early stages, the airline confirmed the new routes will be non-stop and offered through a partnership with a global airline.