Jazeera continues with profitable run of results
Kuwaiti airline, Jazeera Airways, has continued its profit-making results as it announced a second quarter net profit of $9.2 million - a year-on-year increase of 23.5%.
This is the eighth consecutive quarter that the low cost carrier has announced a quarterly profit.
In yesterday’s financial statement the airline said that its operating profit for the three months to 30 June increased 49.2% to $14.8 million as average yields increased 19.4% year-on-year.
The group says its forecast for the rest of the year remains unchanged, with management predicting a seasonal increase in demand during the third quarter followed by a "mild" fourth quarter.
For the first half of 2012, revenues increased 11.8% to almost $100million while operating profits grew 39.9% to $22.5 million. Average yields were up 18.4% year-on-year.
The airline introduced a new strategy for the airline two years ago and has seen it grabbing market share from its main competitor, the government-owned Kuwait Airways.
With lower fares and good service standards the airline has taken the lead on a number of regional routes. Official figures from Kuwait's Directorate General for Civil Aviation (DGCA) showed Jazeera as the leading airline between Kuwait and Amman, and between Kuwait and five Egyptian cities: Alexandria, Sharm El Sheikh, Assiut, Sohag and Luxor.
The airline captured a 38% market share on the Kuwait-Amman, a 31% market share on the Kuwait-Alexandria route, a 60% market share on the Kuwait-Sharm El Sheikh route, a 50% market share on the Kuwait-Assiut route, 38% market share on the Kuwait-Sohag route, and a 71% market share on the Kuwait-Luxor route. The airline's market share also increased on the Kuwait-Cairo route during Q2 to 27%, with a 28% market share during the month of May alone, an 8% increase from April 2012 and an all-time high since it launched the route in May 2011.
The report also showed that Jazeera Airways was the leading Kuwaiti airline between Kuwait and Beirut (capturing 32%), Kuwait and Bahrain (capturing 13%), and Kuwait and Dubai (capturing 16%).
Jazeera Airways also reported this week that it ranks the highest in on-time performance in the Middle East in the second quarter of 2012, as measured by FlightStats, the US-based global OTP tracker. The airline's OTP for the second quarter was 94.21%.