Kuwait-based Jazeera Airways Group has announced its most profitable first half in history with a record net profit of KD7.5 million ($26.3 million) for six months ending June 2013, up 95 per cent from the corresponding period last year.

The company announced a record net profit of KD3.9 million for the second quarter, while the first quarter net profits stood at KD3.6 million.

Jazeera Airways Group’s record H1 earnings bolster the company’s track-record of 12 straight quarters of profitability. The company witnessed record profitability in 11 of 12 quarters.

H1 2013 highlights

•    Revenue: KD30.8 million, up 9 per cent from H1 2012

•    Operating profit: KD9.5 million, up 48 per cent from H1 2012

•    Net profit: KD7.5 million, up 95 per cent from H1 2012

•    Flown passengers: up 4.1 per cent from H1 2012

•    Load factor: 70 per cent, up 11.9 per cent from H1 2012

Jazeera Airways Group chairman Marwan Boodai said, “We started the year with the objective of building on last year’s momentum, and we’ve been successful so far as reflected in the first half financial, operational, and commercial results.”

“We’ve carried more passengers than the same period of last year, with the average load factor exceeding targets while maintaining operational excellence. All together, this culminated in the impressive H1 results that were announced today. Our job is far from over and the team is working hard on closing yet another record-breaking year.”

Mid-year review and outlook

In the last six months, Jazeera Airways Group secured funding for the three remaining aircraft on an order of 15 A320s. The structured loan was led by Kuwait’s NBK and DVB Bank SE. As a result of the loan, the company has secured its financial commitments for the next two years.

In June, Jazeera Airways Group received a brand new Airbus A320 from the manufacturer. To date, Jazeera Airways Group has taken delivery of 13 Airbus A320s since 2005, as part of an order for 15 aircraft of the same type. The remaining two aircraft of the order are scheduled to be delivered in October 2013 and May 2014.

Also in June, the Kuwait Stock Exchange (KSE) inducted Jazeera Airways into the ‘Kuwait 15 index KSX15’ - an index of the 15 top performers on the KSE. The KSX15 is defined by the KSE as their "flagship index ... designed to be a bellwether indicator of the Kuwaiti economy and to track the performance of the Kuwait stock market".

On the aircraft leasing side, the Group’s 100 per cent owned aircraft leasing subsidiary placed an Airbus A320 aircraft with Saudi Arabia-based NAS airlines. Sahaab Aircraft Leasing also has assets placed with Virgin America, SriLankan Airlines, and Jazeera Airways.

The company’s outlook for the rest of 2013 continues to be positive in-line with a growing Kuwaiti economy, which continues to witness higher incomes despite international and regional economic pressures.

The company’s forecasts remain unchanged for the rest of the year. Jazeera Airways Group expects a seasonal increase in demand in the third quarter, and a mild fourth quarter. – TradeArabia News Service