Kuwait-based Jazeera Airways recently revealed its earnings for Q3 of 2020.
A challenging year for the carrier due to the Coronavirus pandemic, commercial flights at Kuwait International Airport were only reinstated on August 1, with limited capacity and a suspension of flights from 34 countries. This follows a five-month suspension of all commercial services between March 13 to July 31, 2020.
Chairman, Jazeera Airways, Marwan Boodai noted: “With restrictions affecting demand for travel and tourism, Jazeera Airways relocated its efforts to serve ‘COVID-safe’ tourist destinations such as Turkey and Dubai, while also focusing on charter and transit flights that connect cities in Asia to others in the Middle East, which have eased restrictions earlier. We’ve seen demand from large numbers of expatriates who are returning home or are now able to return to their place of work.
“The sector remains under pressure worldwide, with the Middle East particularly affected. The situation is expected to continue until Q2 2021 with the newly imposed curfews in Europe. Financially, Jazeera maintains its strict cost control measures to safeguard its financial position and liquidity,” Boodai added.
The airline ended the period with a cash balance of $76.06 million. Operating revenue for the first nine months of 2020 was $107.07 million and the net loss was $50.59 million. The number of passengers flown during the nine-month period stood at 605,877, which included passengers of scheduled commercial flights from January 1 to March 12, as well as passengers of repatriation flights during the suspension period.
Breaking Q3 down, financial and operational highlights worth mentioning include operating revenue of $19.9 million; operating loss of $21.2 million; net loss of $18.2 million; 65.6 thousand passengers flown; and a load factor of 51.8 per cent.
CEO, Jazeera Airways, Rohit Ramachandran declared: “Commercially, our team is doing a phenomenal job at securing charter flights requests. Jazeera has the advantage of a flexible model and a network that includes destinations that are in demand and underserved, giving us a unique position to serve large numbers of passengers who need to travel during flights suspensions.
“We’ve also launched new service to Trabzon, Turkey early in August, serving a need for tourism to destinations deemed safe from the pandemic. There is always demand for travel, and this is what we aimed to focus on. We also announced new services to Dhaka, Bangladesh and Muscat, Oman. Flights to Dhaka will serve outbound customers from Kuwait as well as connect to other cities in the Middle East,” he added.
Boodai concluded: “We continue to support the efforts of the State of Kuwait as our Park & Fly facility remains a COVID-19 drive-through testing centre. We are also working closely with the Ministry of Health and our colleagues in the industry on solutions to enable more commercial flights while ensuring the safety of all incoming passengers.”