Company is well-positioned for growth in 2013, to receive two new additional aircraft during the year
Jazeera Airways group in 2012
- Record net profit of KD13.9 million, up 32% from FY2011’s KD10.6 million, driven by yield enhancement, robust cost management, strong network and continued focus on customers.
- World leader in on-time performance as ranked by FlightStats, the US-based flight tracker.
- By Q4 2012, the Group recorded 10 consecutive quarters of profitability, 9 of which saw record profitability.
Freedom Town, Kuwait – March 25, 2013: Jazeera Airways Group today held its Annual General Meeting of Shareholders at the company’s headquarters in Freedom Town, Kuwait where shareholders approved the Board’s recommendation to retain the company’s record earnings. Jazeera Airways had closed 2012 with a record net profit of KD13.9 million for the year 2012, beating last year’s record earnings by 32% and making the year the company’s best year in history despite regional political unrest and fuel price volatility.
2012 Financial Performance ________
- 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
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.”
2012 Key Developments ________
- Introduction of new sales, booking, and check-in technologies
- 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
- Ranked world leader in OTP by FlightStats
The product and customer experience enhancements have also been a driver in the airline’s returns. The airline introduced new payment and check-in technologies, including mobile apps and self-check-in facilities at Kuwait Airport, the first in Kuwait, and web-check-in throughout the network. By the end of the 2012, one in ten bookings was made on a mobile platform.
Operationally, the airline also had one of its best years to date. FlightStats, the US-based center that monitors flights’ on-time performance (OTP) globally, had ranked Jazeera Airways as the world leader in on-time performance in 2012. This is a major achievement for the airline and a boost to Jazeera Airways’ internal OTP and operational excellence culture.
Group Balance Sheet ________
- 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
- Rights issue executed and completed in Q4, raised the target of KD17.8 million with an oversubscription of 2.25 times
The Group closed the year with an improved and healthy balance sheet that is cash-rich with KD47 million. “I thank our shareholders and their statement of confidence in the Group that evident in the 2.25 times oversubscription of the rights issue that was executed and concluded in the fourth quarter.
“This strong performance clearly demonstrates the agility and viability of the Jazeera Airways Group’s business model, which continues to perform even in the wake of high fuel costs and political turmoil in our region,” said Boodai.
Sahaab Aircraft Leasing ________
As for the Group’s leasing operation, Sahaab Aircraft Leasing had continued to perform as planned by bringing in sustainable and predictable revenues throughout the year. Those results are in line with the initial objectives set for this entity at the time it was acquired by Jazeera Airways Group in February of 2010. Sahaab Aircraft Leasing continues to maintain assets placed with Jazeera Airways, Virgin America and SriLankan Airlines.
The leasing company is scheduled to receive two new Airbus A320 aircraft in 2013. Both are planned to be inducted into the airline operation, replacing two older aircraft. Sahaab Aircraft Leasing will then undertake to remarket those two older aircraft to regional or international customers.
The funds raised through the rights issue will help finance these deliveries and other strategic initiatives and growth plans, in addition to closing high-interest commitments.
The Chairman 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); the Group’s corporate strategy for 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.
“For the airline, 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”.
“I am very optimistic that we will continue to witness growth and perform towards meeting and hopefully exceeding our business plan targets to the satisfaction of our stakeholders and business partners.
“Today, with the right funding in place, both the airline and leasing business lines have been successfully complementing each other for three years now. I can truly say that we have the ideal business structure as proven by the impressive results. Simply said; A bright future is awaiting us,” Boodai told shareholders.
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, Istanbul, Sharm El Sheikh, Assiut, Luxor, Mashhad, Sohag, Jeddah, Riyadh, Cairo and Al Najaf.