Jazeera Airways reported a 47.4% year-on-year decline in third-quarter 2026 net profit to KD 7.1 million ($23 million), as higher fuel prices, regional geopolitical uncertainty and operational restrictions weighed on its financial and operational performance.

Group operating revenue fell 10.6% to KD 62.1 million, compared with KD 69.4 million in Q3 2025, reflecting reduced operating capacity, lower passenger volumes and adjustments to the airline's network.

The airline said average fuel prices surged 55% to $139 per barrel, compared with $90 a year earlier, resulting in a 28% increase in fuel costs despite an 18% reduction in block hours.

Operations were also affected by limited airport operating hours until September 20 and the continued suspension of connecting passenger traffic through Terminal 5 (T5).

Jazeera Airways carried 1.07 million passengers during the quarter, down 26.3% from 1.46 million in the corresponding period last year. Its load factor declined by 3.1 percentage points to 74.9%, from 78%.

Ground Handling Investment and Market Share Growth

Third-quarter profitability included KD 1.4 million in pre-operating payroll expenses related to establishing the airline's in-house ground handling operations ahead of receiving licensing approval in October 2026.

Excluding these expenses, net profit would have reached KD 8.5 million, representing a 37% year-on-year decline.

The investment forms part of Jazeera Airways' strategy to strengthen operational control, improve service efficiency and optimise costs.

The airline also recorded growth in ancillary revenue per passenger, which almost tripled to KD 15.6. Meanwhile, its market share at Kuwait International Airport increased to 36.7% in Q3 2026, compared with 31% in the same period last year.

In October, Jazeera Airways received approval to manage its own ground handling operations, marking progress in its efforts to improve operational efficiency.

Nine-Month Revenue Increases Despite Profit Decline

For the first nine months of 2026, Jazeera Airways reported group operating revenue of KD 177.9 million, up 3.7% compared with the same period last year.

However, net profit declined 32% to KD 15.7 million, while passenger numbers fell 30% to 2.6 million.

The airline's nine-month load factor improved by 0.8 percentage points to 77.3%, compared with 76.5% in the corresponding period of 2025.

The results reflect significant disruption during the year, including the temporary closure of Kuwait International Airport for 57 days. In response, Jazeera Airways implemented its 'Mission Barakah' initiative, relocating its operational base to Saudi Arabia to maintain vital connectivity for Kuwait.

The airline said the operation demonstrated its ability to respond to unprecedented disruption while maintaining essential services.

Marwan Boodai, Chairman of Jazeera Airways, said:“This year has been exceptionally challenging for businesses globally, with the aviation industry facing significant pressures. Jazeera Airways continues to be impacted by regional geopolitical uncertainty, elevated fuel prices and operating restrictions. This, combined with the suspension of connecting passengers through Terminal 5, has further constrained our network potential and growth opportunities. Despite these pressures, Jazeera Airways maintained profitability, reflecting the agility and resilience of our business model and the commitment of our hardworking teams. Looking ahead, our priority remains to safeguard Jazeera Airways’ financial strength, maintain strict operational and cost discipline, and build more efficiency while embarking on the next phase of growth. Uncertainties remain persistent and we will continue to navigate these challenges with prudence and adaptability, positioning Jazeera Airways to seize emerging opportunities and deliver sustainable growth.”

Operational Efficiency and Growth Priorities

Jazeera Airways said its priorities include restoring operating capacity, optimising its route network, improving cost efficiency and managing external market pressures.

The airline expects regional geopolitical developments, fuel price volatility and operating restrictions to continue affecting its financial and operational performance.

Connecting passenger traffic through T5 remains suspended, with its eventual resumption expected to improve network connectivity and create further growth opportunities.

The company said it will continue to focus on financial discipline, operational improvements and long-term strategic investments while adapting to changing market conditions. -TradeArabia News Service