Jazeera cites yield pressure as Q3 profits halve

Kuwaiti budget carrier Jazeera Airways’ net profit halved during Q3, to just under KD7m ($22.7m). The carrier’s revenues dipped slightly to KD61m despite a 28% rise in passenger numbers to 1.38m for the three months to 30 September. Jazeera expanded its fleet with the introduction of two additional aircraft, taking its total to 22. Over Q3 the airline also extended its network to 64 destinations with new services from Kuwait to Tehran and Islamabad. Chairman Marwan Boodai says the airline has been subject to a “tough regulatory, geopolitical and regional landscape”. “While depressed yields due to overcapacity remain a challenge, we are well placed to leverage our low cost-base to maintain margins and create value for our shareholders,” he says. Jazeera Airways managed to generate net profit of KD13.3m for the first nine months of the year – down from the previous KD20.8m – on a near-13% rise in revenues to KD159m. It adds that the outlook for the remainder of the year “remains positive” despite the yield pressure.<br/>