Jazeera Airways has registered the third consecutive profit-making year with its net profit for 2008 soaring 94 per cent to hit KD4.5 million ($15.4 million) when compared to KD2.3 million ($7.8 million) the previous year.

The airline also saw its operating revenues grow over 40.3 per cent to KD 48.7 million when compared to KD 34.7 million in 2007 despite economic downturn and record fuel prices.

Announcing the results for the year ending December 31 2008, Marwan Boodai, chairman of Jazeera Airways, said, 'The year 2008 was our third consecutive profit-making year, making us the only airline in the Middle East that continues to be profitable since its first operational year.'

'Jazeera Airways continues to surprise the market with year on year revenue and profit growth. This despite the challenges in 2008 from high fuel prices which resulted in fuel comprising 40 per cent of revenues (32 per cent in 2007),' he told the shareholders at the annual meeting in Freedom Town.

'We managed these results on the back of yield improvement of 18.5 per cent and reducing our Cost per ASK by 8 per cent,' Boodai noted.

'The strategic initiative to deleverage the business in 2008, with the sale and leaseback of some assets has strengthened our balance sheet at exactly the right time, considering current credit crisis,' he added.

Looking forward to 2009, Boodai said 'we have now flown more than 3.7 million passengers since we started operation and operate to 25 destinations with a fleet of eight aircraft operating from two hubs.'

'We will add another 51 per cent to our capacity during 2009 to build on the continued success of our first three years while continuing to target sustainable performance by robust yield and cost management programs, which in turn enable us to maximize shareholder returns as we pursue our aggressive growth targets.'

Shareholders reviewed and ratified the airline's 2008 financial accounts and agreed to the selection of Price Waterhouse Coopers as auditors, and re-elected the board for another 3-year term.

At the meeting, shareholders also approved directors' recommendation to the issuance of 10 per cent bonus shares to existing shareholders as on the date of the meeting.

They also approved Jazeera's proposal to boost capital by KD2 million through issuing of 20 million fully paid shares of 100 fils each. Jazeera Airways’ shareholders also agreed to the board's proposal that a bonus will be paid to board members.

Jazeera Airways is listed on the Kuwait Stock Exchange and operates a fleet of eight Airbus A320s to destinations across the Middle East, Europe, Iran, North Africa, and the Indian Subcontinent.

The airline will receive two brand new aircraft from Airbus in June thus bringing the fleet strength to 10, Boodai added.

The airline has firm order for 30 additional aircraft, to be delivered over the coming years with the last fleet installment scheduled for delivery in 2014.-TradeArabia News Service