Jazeera and Air Arabia experience contrasting first-quarter fortunes

Kuwaiti budget carrier Jazeera Airways has turned in a first-quarter loss while Sharjah low-cost operator Air Arabia managed to achieve a net profit in the same period. Jazeera Airways is proposing a rights issue of KD10m ($33m) to improve its liquidity position, after posting a net loss of KD5.2m for the first three months of the year. Although its revenues sank by 57% to KD8.1m, it only cut costs by 39% to KD12.2m. Kuwaiti authorities had allowed a gradual resumption of flight operations from August 2020 but disruption re-emerged in late February 2021, says the carrier. Jazeera points out, however, that it has “sufficient resources” to continue operating and its going-concern position is unchanged from the end of 2020. It adds that the proposed rights issue will “strengthen” its liquidity. It adds that it expects a phased relaxation of restrictions on airport operations beginning in June, and increased demand for air travel in summer. United Arab Emirates budget operator Air Arabia, in contrast, generated a net profit of Dhs34m ($9.3m) for the first quarter despite the pandemic’s continuing impact. This figure was nevertheless half the Dhs71m achieved in the same period last year.<br/>