Kuwait, Jazeera Airways Group today held its annual general meeting of shareholders at the company’s headquarters in Kuwait and the shareholders approved the board’s recommendation to retain the company’s record earnings.

Jazeera Airways had closed 2012 with a net profit of KD13.9 million (US$ 48.71 million*) for the year 2012, increasing last year’s  earnings by 32% and marking the year the company’s best year in the airlines' history 

Marwan Boodai, Jazeera Airways Group's chairman said: “Like 2011, 2012 was another record-breaking year in every sense. This performance continued to be driven directly by a healthy, growing, profitable and sustainable airline business, and a reliable and consistent leasing business. Together, they have proven to be an ideal business combination that generates a sustainable net profit in every quarter.” 

“I thank our shareholders and their statement of confidence in the Group that evident in the 2.25 times over-subscription of the rights issue that was executed and concluded in the fourth quarter.

“This strong performance clearly demonstrates the agility and viability of the Jazeera Airways Group’s business model, which continues to perform even in the wake of high fuel costs and political turmoil in our region.

“Our continued success in 2012 couldn't have been achieved without the cooperation of the Kuwait Directorate of Civil Aviation and their support across all levels, our partners and service providers, and the support of the government of Kuwait.

“For the airline, we operate a regional network where the average flight time is 2.25 hours. This market is always in demand and has repeatedly shown it can withstand political, weather, and financial shocks. Since 2008 we’ve seen financial crises, revolutions, wars, severe weather disruptions and irregular regulatory environments, and despite it all, demand for our product never waned and we continued to generate record earnings while serving our customers with a great product.

“I am very optimistic that we will continue to witness growth and perform towards meeting and hopefully exceeding our business plan targets to the satisfaction of our stakeholders and business partners.

“Today, with the right funding in place, both the airline and leasing business lines have been successfully complementing each other for three years now.  I can truly say that we have the ideal business structure as proven by the impressive results.  Simply said; A bright future is awaiting us.”

2012 Financial Performance:

● FY2012 Operating revenue: KD62.6 million, up 8 percentage from FY2011’s KD57.8 million 
● FY2012 Operating profit: KD18.5 million, up 25 percentage from FY2011’s KD14.9 million
● FY2012 Net profit: KD13.9 million, up 32 percentage from FY2011’s KD10.6 million
● FY2012 Average yield: up 13 percentage from FY2011

2012 Key Developments:

Introduction of new sales, booking, and check-in technologies. By the end of the 2012, one in ten bookings was made on a mobile platform.
Received one new aircraft, financed with backing from European Export Credit Agency 
Launched the first commercial service between Kuwait and Iraq in 22 years, endorsed by the governments of both countries

Group Balance Sheet:

Hard assets of KD149 million
Cash reserves increased to KD47 million, exceeding equity
Equity improved by KD32 million
Debt to equity ratio of 1.6
Rights issue executed and completed in Q4, raised the target of KD17.8 million with an oversubscription of 2.25 times

The Group closed the year with KD47 million cash balance sheet

Sahaab Aircraft Leasing:

Sahaab Aircraft Leasing continues to maintain assets placed with Jazeera Airways, Virgin America and SriLankan Airlines.  

The leasing company is scheduled to receive two new Airbus A320 aircraft in 2013. Both are planned to be inducted into the airline operation, replacing two older aircraft.  Sahaab Aircraft Leasing will then undertake to remarket those two older aircraft to regional or international customers.

According to the Kuwait based carrier, the results reflect the ongoing success of the Group’s strategic master plan (STAMP); the Group’s corporate strategy for for the years 2012 to 2014.