-Net profit of KD 2.2 million, best Q2 since inception
-Fourth consecutive quarter of profits
-Continues profitability at both operating and net levels
Freedom Town, Kuwait – Aug 8, 2011 — In a live webcast with financial analysts, Jazeera Airways Group today announced a second quarter (Q2) net profit of KD 2.2 million, up from a net loss of KD 4.7 million in Q2 2010, making Q2 2011 the Group’s fourth consecutive profitable quarter since the introduction of the company’s Turn-Around Plan in mid-2010, and the best Q2 since inception.
Q2 2011 Financial highlights:
-Operating revenue: KD 13.9 million, up 63.6% from Q2 2010
-Operating profit: KD 2.8 million, compared to an operating loss of KD 1.8 million in Q2 2010
-Operating expenses: KD 11.1 million, a 7% increase from Q2 2010
-Net Profit: KD 2.2 million, compared to a net loss of KD 4.7 million in Q2 2010
Q2 2011 Operational highlights:
-Average yield up 52% from Q2 2010
-Load factors up 23.7% from Q2 2010
-Passengers flown: 299,231
-Captured market-leading market share on most routes
H1 2011 Highlights:
-Operating revenue: KD 25.3 million, up 41.9% from H1 2010
-Operating profit KD 4.6 million, compared to an operating loss of KD 5.1 million in H1 2010
-Operating expenses: KD 20.7 million, down 97% from H1 2010.
-Net profit: KD 3.3 million, compared to a net loss of KD 9.2 million in H1 2010.
Jazeera Airways Group had registered KD 4.4 million in net profit for the third quarter (Q3) of 2010, KD 2 million in net profit for the fourth quarter (Q4) of 2010, KD 1.1 million in net profit for the first quarter (Q1) of 2011.
Jazeera Airways Group Chairman Marwan Boodai told analysts, “Our continued record-performance is a direct result of the business-enhancement measures we’ve put in place since mid-2010 as part of the Turn-Around Plan. In addition to reducing cost, the Turn-Around Plan brought more flexibility and efficiency to the business for the long-term. Jazeera Airways Group comprises an aircraft leasing business with assets deployed across the world, and a commercial airline business serving 18 destinations across the Middle East. The results we’ve announced today reflect the consolidated earnings of both business lines”.
About the group’s Turn-Around Plan:
Since inception in late 2005, Jazeera Airways Group has been profitable every year until 2009, when it registered a net loss for the first time ever due to the overcapacity that was dumped in the market by existing government airlines and new players as well. The Turn-Around Plan was created as a direct response to this situation and aimed at solving this external challenge by resizing its own operations internally, and to ultimately bring the Group back to profitability.
Implemented in May 2010, the Turn-Around Plan included asset redeployment, staff reductions, rigorous cost management, network/market alignment and enhanced commercial offering, which were rolled over the several months that followed.
| ROUTE | H1 MARKET SHARE |
| Aleppo, Syria (ALP) | 95.02% |
| Alexandria-Borg el Arab, Egypt (HBE + ALY) | 44.17% |
| Amman, Jordan (AMM) | 34.28% |
| Assiut, Egypt (ATZ) | 71.38% |
| Bahrain, Bahrain (BAH) | 19.48% |
| Beirut, Lebanon (BEY) | 34.50% |
| Cairo, Egypt (CAI) | 17.06% |
| Damascus, Syria (DAM) | 46.28% |
| Deirezzor, Syria (DEZ) | 97.34% |
| Doha, Qatar (DOH) | 8.54% |
| Dubai, United Arab Emirates (DXB) | 16.76% |
| Istanbul-Ataturk, Turkey (IST + SAW) | 10.98% |
| Jeddah, Saudi Arabia (JED) | 15.18% |
| Luxor, Egypt (LXR) | 88.39% |
| Mashhad, Iran (MHD) | 28.51% |
| Riyadh, Saudi Arabia (RUH) | 10.24% |
| Sharm el Sheikh, Egypt (SSH) | 36.28% |
| Sohag, Egypt (HMB) | 42.94% |