Jazeera’s Q2 operating loss widens

Kuwait’s Jazeera Airways’ operating loss widened significantly in the second quarter to KD4.73m ($15.7m) as compared to KD1.87m in the same period in 2020. The group says the outbreak of the Covid-19 pandemic in early 2020 in most countries has caused widespread disruptions to business, with a consequential negative impact on economic activities. The economic fallout of the crisis is significant and evolving, impacting the key performance indicators of the group. Total loss incurred during the period was KD6.52m versus KD3.93m in Q2 2020. The airline generated KD7.42m in revenues, down 4.1% year-on-year. As compared to Q2 2020, passenger revenue declined to KD5.88m from KD6.94m whereas ancillary revenue increased to KD750,015 from KD136,885. Cargo revenues declined 17% year-on-year to KD480,497. In July, Jazeera completed a rights issue amounting to KD10m. As of 30 June, its cash and cash equivalents stood at KD8.29m. For the January to June period, Jazeera has posted an operating loss of KD8.84m, an increase from KD3m in H1 2020. Total loss for the period stood at KD11.6m as compared to KD9.95m in the same period year ago. The carrier saw a 42% year-on-year decline in its revenue to KD15.5m.<br/>