- Company is well-positioned for growth in 2013, to receive two new additional aircraft during the year
Earnings per share: 38.37 Kuwaiti fils per share
Freedom Town, Kuwait – February 6, 2013: In a webcast attended by local and international analysts, Jazeera Airways Group today announced a net profit of KD13.9 million for the year 2012, beating last year’s record earnings and making the year the company’s best year in history despite regional political unrest and fuel price volatility.
As a result of these earnings, Jazeera Airways Group continues to be one of the very few profitable airlines in the Middle East, while the competitive landscape continues to be dominated by government backed, owned, and operated airlines.
FY 2012 Financial Highlights:
- FY2012 Operating revenue: KD62.6 million, up 8% from FY2011’s KD57.8 million
- FY2012 Operating profit: KD18.5 million, up 25% from FY2011’s KD14.9 million
- FY2012 Net profit: KD13.9 million, up 32% from FY2011’s KD10.6 million
- FY2012 Average yield: up 13% from FY2011
Q4 2012 Financial Highlights:
- Q4’12 Operating revenue: KD13.9 million, up 5% from Q4’11’s KD13.3 million
- Q4’12 Operating profit: KD3.3 million, up 18% from Q4’11’s KD2.8 million
- Q4’12 Net profit: KD2.5 million, up 93% from Q4’11’s KD1.3 million
Balance Sheet Highlights:
- Hard assets of KD149 million
- Cash reserves increased to KD47 million, exceeding equity
- Equity improved by KD32 million
- Debt to equity ratio of 1.6
Key 2012 Developments:
- Rights issue completed in Q4, raised the target of KD17.8 million with an oversubscription of 2.25 times the target
- Received one new aircraft, financed with backing from European Export Credit Agency
- Launched the first commercial service between Kuwait and Iraq in 22 years, endorsed by the governments of both countries
- Introduction of new sales, booking, and check-in technologies
Established in 2005, Jazeera Airways Group is a Kuwait Stock Exchange-listed company. The company has 12 fully-owned Airbus A320s in operation, distributed between its airline business, Jazeera Airways (seven aircraft), and its fully-owned leasing business, Sahaab Aircraft Leasing (five aircraft). Sahaab has assets placed with Virgin America, SriLankan Airlines, and Jazeera Airways.
Jazeera Airways Group Chairman Marwan Boodai said, “Like 2011, 2012 was another record-breaking year in every sense. This performance continued to be driven directly by a healthy, growing, profitable and sustainable airline business, and a reliable and consistent leasing business. Together, they have proven to be an ideal business combination that generates a sustainable net profit in every quarter.”
“Today we have one of the healthiest balance sheets in the region that is also cash-rich with KD47 million. I thank our shareholders and their statement of confidence in the Group and its management team as evident in the rights issue held in Q4, which was oversubscribed by 2.25 times,” said Boodai.
2012 in Review
In addition to the financial results, 2012 was milestone year for the Group. The airline continued its focus on boosting the customer offering with new payment and check in technologies, including mobile payment and self-check-in facilities at Kuwait Airport and web-check-in throughout our network. Today, one in ten bookings are made on a mobile platform, which is one of the highest mobile booking penetration in the region.
Boodai said, “Our continued success in 2012 couldn’t have been achieved without the cooperation of the Kuwait Directorate of Civil Aviation and their support across all levels, our partners and service providers, and the support of the government of Kuwait.”
The results reflect the ongoing success of the Group’s Strategic Master Plan (STAMP). STAMP is a business plan for the years 2012 to 2014.
2013 Outlook
Following the last two record-breaking years, the Group well-positioned for another growth year in line with the strategic master plan set by the management team.
“We operate a regional network where the average flight time is 2.25 hours. This market is always in demand and has repeatedly shown it can withstand political, weather, and financial shocks. Since 2008 we’ve seen financial crises, revolutions, wars, severe weather disruptions and irregular regulatory environments, and despite it all, demand for our product never waned and we continued to generate record earnings while serving our customers with a great product,” said Boodai.
“Our outlook for 2013 is positive as we plan to receive two additional aircraft during the year, bringing our fleet to 14 aircraft as we capitalize on demand in the existing network.”
The airline operates a two-class cabin comprising of a Business Class and an Economy Class. Jazeera Airways’ Business Class offering includes a separate cabin for passengers, exclusive check-in counters, business lounge access at airports, in-flight à la carte menu, and 60 kilograms in free baggage allowance. The airline’s Economy Class offers travelers free baggage allowance of 40 kilograms, free on-board meals with a changing menu every month, and year-round value fares.
Jazeera Airways is based in Kuwait and operates a network comprising high-demand business, leisure, family, and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria, Amman, Damascus, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Cairo and Al Najaf.