Jazeera Airways posts KD13.9mn in net profits for 2012

Jazeera Airways Group, the Kuwaiti leading private low-fare airline, has posted a record KD13.9mln net profit for the year 2012 compared with KD10.6mln a year earlier, up 32 percent.  "This is the best annual financial results for the airline since its inception," Jazeera Airways Chairman Marwan Boodai said during the company's general assembly held here Monday.  Boodai estimated the group's operating revenue in 2012 at KD62.6mln, up 8 percent from KD57.8mln in 2011.He put the operating profit at KD18.5mln in 2012, up 25 percent from KD14.9mln in 2011.  "Moreover, the average yield on each seat of the airline aircraft fleet jumped by 13 percent in 2012," he said. Boodai partially attributed the continued profitability of Jazeera Group to the almost fixed revenues of its fully-owned leasing business, Sahaab Aircraft Leasing which has five aircraft.  With regard to the most important achievements of the group during 2012, Boodai noted that the airline has received a new aircraft, financed with backing from European Export Credit Agency.  "We have also launched the first commercial service between Kuwait and Iraq in 22 years, endorsed by the governments of both countries," he said.  Furthermore, the group has also managed to raise its capital by KD17.8mln in the fourth quarter of 2012, with an oversubscription of 2.25 times the target.  "This shows the strength and flexibility of the business model of Jazeera Airways Group," Boodai said.  He announced that the group's hard assets have amounted to KD149mln and its cash reserves went up to KD47mln. The group's equity also improved by KD32mln, he said.  "Moreover, the group data showed that the debt to equity ratio stood at 1.6 in 2012," he added.  As for Sahaab Aircraft Leasing, Boodai said the company has retained its good performance since its acquisition in February 2010.  "Sahaab will also receive two new planes in 2013 and will lease them to Jazeera Airways," he unveiled.  Boodai revealed that the general assembly has approved all the items on its agenda, including the election of a new board member and accepting the resignation of three others.  Launched in October 2005, Jazeera Airways Group is a Kuwait Stock Exchange-listed company. The company has 12 fully-owned Airbus A320s in operation, distributed between its airline business, Jazeera Airways (seven aircraft), and its fully-owned leasing business, Sahaab Aircraft Leasing (five aircraft). Sahaab has assets placed with Virgin America, SriLankan Airlines, and Jazeera Airways.  The airline's business model is based on a point-to-point operation, with a unique positioning of delivering value in price, service, and amenities for short-haul travel -all while maintaining a lean cost structure.