By Staff writer
Carrier recommends payments to shareholders totalling more than $160m after strong performance in 2014
Kuwait-based Jazeera Airways Group has recommended record dividends and payments to shareholders totalling up to KD50 million ($166.4 million) in the form of special dividends for 2014 and a share buyback programme.
The company said all payments will be executed separately in the next several months with the last payment expected to take place in August, pending regulator and shareholders approvals.
The company said it had a record Q4 2014 performance, earning pre-transaction net profit of KD3.8 million, an increase of 47 percent from the same quarter last year.
The company's full-year revenue was KD68.8 million, up 4.9 percent from last year, and its pre-transaction net profit was KD17.4 million, up 4.4 percent from 2013.
However, the company said its bottom line for 2014 was affected by a one-time non-recurring loss leading to a net loss of KD2.88 million for the year.
Jazeera Airways Group chairman Marwan Boodai said: "Our recommendation today to distribute up to KD50 million in shareholder payments reflects our strong performance last year and the successful divestment of the leasing business. The board is confident in the continued future cash flow and the growth of our airline."
Boodai added: "Our divestment from the leasing business came at the right time for us and our buyers. Our fleet's new owners are getting modern assets that are already placed with airlines across the world and generating revenue from day one.
"We are now focused on our star performer, Jazeera Airways, which is now more nimble, asset-light, cash-rich and debt-free to pursue new opportunities to serve our customers".For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.