Jazeera Airways cuts net loss, reports break-even in operations

In other developments, Jazeera Airways welcomed Barathan Pasupathi (Bara) as its new Chief Executive Officer during 1Q 2024, bringing extensive experience in aviation and finance.

Published On May 5, 2024 at 08:40 PM IST

Jazeera Airways has released its financial results for the first quarter (1Q) of 2024, reporting a break-even in operations but a net loss of KD 2.7 million primarily due to foreign currency losses amounting to KD 2.5 million. The total group revenue for the quarter stood at KD 46.4 million, slightly lower compared to KD 48.3 million from the same period in 2023.

Despite these challenges, Jazeera Airways handled 1.2 million passengers in 1Q 2024, marking a 4.2 per cent increase or approximately 47,000 more passengers compared to 1Q 2023. The load factor was reported at 79.3 per cent, and Jazeera Airways' network market share grew to 37.3 per cent from 36.1 per cent in 1Q 2023. Additionally, retail lease revenue for Terminal 5, owned and managed by the airline, increased to KD 378,000, and duty-free business grew by 5.4 per cent to KD 1.2 million.

Marwan Boodai, Chairman of Jazeera Airways, commented on the results, stating, "Jazeera Airways has consistently demonstrated resilience in challenging environments. While we faced foreign currency fluctuations resulting in a net loss, our operational focus and adaptability to market conditions remain strong, positioning us for growth in the upcoming summer season and throughout 2024."

Financial and Operational Highlights for 1Q 2024:

- Operating revenue: KD 46.4 million, down 4.1 per cent from 1Q 2023 but up 18.3 per cent from 4Q 2023.
- Operating profit: KD 1.3 million, down 64.6 per cent from 1Q 2023 but up 120 per cent from 4Q 2023.
- Net loss: KD 2.7 million, down 216.5 per cent from 1Q 2023 but down 62.2 per cent from 4Q 2023.
- Passengers: 1.2 million, up 4.2 per cent from 1Q 2023 and up 0.7 per cent from 4Q 2023.
- Load factor: 79.3 per cent, down 2.7 per cent from 1Q 2023 but up 3.5 per cent from 4Q 2023.
- Yield: KD 37.43, down 8.9 per cent from 1Q 2023 but up 17.7 per cent from 4Q 2023.

Singapore aims to cross pre-Covid levels of tourist arrivals from India this year

"It's not difficult to achieve (pre-Covid levels of tourist arrivals from India this year) with an increase in the number of Indian passports, the rise of the middle class and strong connectivity between both the countries," STB's regional director - India, Middle East, South Asia and Africa, Markus Tan told PTI over a telephonic conversation.

In other developments, Jazeera Airways welcomed Barathan Pasupathi (Bara) as its new Chief Executive Officer during 1Q 2024, bringing extensive experience in aviation and finance. The airline also announced the launch of direct flights to Batumi, Georgia, scheduled to commence on 14 June 2024, along with the resumption of operations to various summer destinations.

Looking ahead, Jazeera Airways remains focused on financial and operational growth, aiming to enhance products, services, and Jazeera Terminal 5 while covering nearly 63 destinations across the Middle East, Central and South Asia, Africa, and Europe.