Airline back in the black for first time in three years after restructuring its business
Jazeera Airways returned to profit for the first time in three years, meeting analysts’ estimates, as the Kuwaiti airline restructured its business.
Net income was KD10.6m ($38m) last year after a loss of KD2.8m a year earlier, the low-cost airline said in a statement on Tuesday.
The average estimate of four analysts was for a profit of KD10.6m, according to data compiled by Bloomberg.
The airline posted losses in 2010 and 2009, according to the data.
Revenue increased to KD57.8m from KD42.6m, the airline said.
“The results reflect the success of the company’s turn-around plan implemented in second quarter 2010 and steered the company into continued profitability for the last six quarters,” it said.
Although they have regained the profit margin, there is much discontentment from the passenger level in the Kuwait market. Firstly, the planes are wrong for this market. The seats are too small in a country with a growing obesity rate and passenger's have to struggle down the narrow center aisle. Most importantly, there pricing is wrong. I should NEVER have to pay 200 KD to fly to Dubai with higher tax rate then a major carrier like Emirates flying the same duration. The option of travel insurance should be separate from the booking process because it defaults to 'yes' after you have selected 'no' and have selected your seating forcing the customer to add another charge to his ticket. They are dysfunctional and are confused about their place in the market and need to immediately purchase plains appropriate for this market, how about a 320neo which other carrier arm-wrestled for at the Dubai Airshow? It needs a face-lift!