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Fri 17 Feb 2017 11:04 AM

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Kuwait's Jazeera sees 2016 net profit slump by nearly 30%

Airline says full-year revenue also down by 10% despite carrying marginally more passengers

Kuwait's Jazeera sees 2016 net profit slump by nearly 30%
Kuwaiti low-cost carrier Jazeera Airways. (Getty Images)

Jazeera Airways has announced it made KD52.8 million in revenues for 2016 and a net profit of KD10.8 million ($35.4 million) making it the company’s sixth consecutive year of profitability.

Net profit was down by nearly 30 percent compared to the previous year while the number of passengers carried over the year rose marginally, the airline said in a statement.

It said revenues were down by 10 percent, adding that the board of directors has recommended a 35 percent cash dividend totalling KD7 million. 

Jazeera Airways chairman Marwan Boodai said: "I am pleased to report that the year 2016 was our sixth consecutive year of profitability, however the slowing macro economic environment and the continued oversupply of seats on our routes placed pressure on our yields, resulting in a 29.8 percent drop from last year while carrying slightly more travellers.

"Having said that, with six years of consecutive profitability and virtually no debt, our balance sheet remains strong and cash-rich, making it the healthiest balance sheet in our industry."

He added: “Looking forward, we believe that with the recent investments in on-ground facilities that we’ve made -  and launched in the second half of 2016- will attract more travellers in the quarters to come.

"Our new terminal, which we have announced earlier will differentiate our product and gradually counter the pressure on yields. The terminal is due to start welcoming travelers by year-end.”

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