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Tue 22 Feb 2011 06:10 PM

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Kuwait's Jazeera Airways swings to Q4 profit

Low-cost airline posts net profit of KD2m, helped by staff reductions and cost-cutting

Kuwait's Jazeera Airways swings to Q4 profit
Jazeera Airways posted a second straight-quarter profit after posting losses in the first half of 2010

Kuwait's low-cost carrier Jazeera Airways posted a second
straight-quarter profit after posting losses in the first half of 2010,
marginally beating analysts forecasts.

Net profit in the final quarter of 2010 came in at KD2m ($7.15m),
compared with a loss of KD6.73m during the same period in 2009, Jazeera said in
a statement, adding that it was the airline's best second half results since
2008.

The airline said it returned to profits partly due to asset
staff reductions and other cost cutting measures. It did not give more details
on job reductions.

"Looking forward we are optimistic about 2011 and
working hard on sustaining profitability for the year," Chairman Marwan
Boodai was quoted as saying in the statement.

The airline reported a net loss of KD2.8m for the full-year
of 2010, compared with a loss of KD8.2m in 2009.

In August last year, the airline cancelled a premium on a
planned rights issue and said it expected support from its shareholders and
lenders to provide liquidity.

The carrier, which aims to fly 82 routes in the Middle East
within the next five years, competes with United Arab Emirates-based Air Arabia
and Dubai-based low cost carrier flydubai.

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