The <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Middle East’s first private airline, Jazeera Airways K.S.C, announced today it registered a profit of USD 8.7 million in its first year of operations ending December 31 2006.
Jazeera Airway’s audited financial statements covers it’s first complete financial year from January 1 to December 31, 2006 and reported revenues of USD 74.5 million with a profit of USD 8.7 million and earnings per share of US Cents 8.7.
2006 Performance Figures and Statistics
|
Revenues (USD 000) |
74,501 |
|
EBITDA (USD 000) |
25,324 |
|
Net Profit (USD 000) |
8,660 |
|
Net Profit Margin (%) |
11.6 |
|
Total Assets Including Aircraft Deposits (USD 000) |
191,340 |
|
Shareholder’s Equity (USD 000) |
38,184 |
|
Earnings Per Share (US Cents) |
8.66 |
|
Average Revenue per Passenger (USD) |
124 |
|
Total Passengers Flown |
600,618 |
|
Seat Load Factor (%) |
67 |
|
On-time performance (%) |
93 |
Chairman and CEO Marwan Boodai said, “We broke a 50-year monopoly with our first flight on October 30, 2005. Since then we were able to make a notable presence for ourselves in a market that is filled with government-backed competition. I am very proud of our achievement that is mainly due to our team’s efforts in building a low-cost base. We are very optimistic about both our future and the future of the industry in the hands of the private sector. ”
Jazeera Airways is the only airline in the Middle East that is neither owned nor subsidized by any government. It was established in June 2004 with a capital of USD 34 million, 70% of which was raised though an up front IPO that was over-subscribed 12 times and created a base of 36,500 shareholders.
The airline then spent the next 15 months establishing itself and started operations from its primary base in Kuwait on October 30, 2005 with two brand new Airbus A320s and five destinations.
Today, the airline operates a new fleet of five Airbus A320s to 20 destinations in the Middle East, North Africa, Iran, and India through two main hubs in Kuwait and Dubai. It is also expecting delivery of an additional confirmed order of five Airbus A320s from Airbus and has options on six aircraft of the same type with the manufacturer.
Outlook
Boodai said, “In 2007 we will continue to enter high-demand cities while staying true to our five year business plan of establishing hubs throughout the Middle East. We are off to a great start this year with the launch of our Dubai hub last month and the start of flights to Cyprus, Salalah, Muscat, Tehran, and Shiraz.”
Jazeera Airways recently submitted its application to the Kuwait Stock Exchange, the second largest bourse in the Middle East in terms of capitalization, and the airline looks to gain approval for listing in the second quarter of this year. It has contracted NBK Capital as financial advisors.
Last September, Jazeera Airways’ shareholders approved the Board’s request to increase capital by 100% through a rights issue. The transaction is pending government approval and is expected to take place in the second quarter as well. Jazeera Airways continues to meet its financial targets and raising additional capital, as part of the original business plan, will help finance the next phase of growth in the coming years.
Boodai said, “we are committed to raising the bar and heralding the future of the aviation industry in the Middle East as it moves into the private sector”.
© 2007 Al Bawaba (www.albawaba.com)
