Jazeera Airways highlights strong 2008 profit

Shareholders reviewed and approved financial accounts for the year ending on December 31 2008, which closed with a net profit of KD4.45m representing a 94% increase over 2007 net profit of KD2.3m and operating revenues of KD48.7m; representing growth of 40.3% over operating revenues of KD34.7m for 2007.

Mr. Marwan Boodai, Chairman of Jazeera Airways commented that:

"The year 2008 was our third consecutive profit-making year, making us the only airline in the Middle East that continues to be profitable since its first operational year. Jazeera Airways continues to surprise the market with year on year revenue and profit growth. This despite the challenges in 2008 from high fuel prices which resulted in fuel comprising 40% of revenues (32% in 2007). We managed these results on the back of yield improvement of 18.5 % and reducing our Cost per ASK by 8%. The strategic initiative to deleverage the business in 2008, with the sale and leaseback of some assets has strengthened our balance sheet at exactly the right time, considering the current credit crisis."

Looking forward to 2009, Boodai said "we have now flown more than 3.7 million passengers since we started operation and operate to 25 destinations with a fleet of eight aircraft operating from two hubs. We will add another 51% to our capacity during 2009 to build on the continued success of our first three years while continuing to target sustainable performance by robust yield and cost management programs, which in turn enable us to maximize shareholder returns as we pursue our aggressive growth targets. "

Shareholders ratified the airline's 2008 financial accounts and agreed to the selection of Price Waterhouse Coopers as auditors, and re-elected the board for another 3-year term. At the meeting, Shareholders approved Directors recommendation to the issuance of 10 % Bonus Shares to existing shareholders as on the date of the Meeting and to increase the capital by KD2,000,000 by issuing 20,000,000 fully paid shares of 100 fils each. Jazeera Airways' shareholders also agreed to the board's proposal that a bonus will be paid to board members.

Jazeera Airways is listed on the Kuwait Stock Exchange and operates a fleet of eight Airbus A320s to destinations across the Middle East, Europe, Iran, North Africa, and the Indian Subcontinent. The airline will receive two brand new aircrafts form Airbus in upcoming June bringing the total fleet to 10 aircrafts. The airline has firm order for 30 additional aircraft, to be delivered over the coming years with the last fleet installment scheduled for delivery in 2014.