NBK Capital, Kuwait issued a report on Jazeera Airways, raising the stock’s fair value by 15.4% from 260 fils to 300 fils to reflect better forecasts based on the airliner’s latest results. This valuation represents nearly 24% upside potential to the stock’s market close of 242 fils on Monday, Sept. 5th. 

The airline reported strong financial results for Q2-11 ahead of the report issuer’s expectations. Q2-11 figures reflected earnings of KWD 2.12 million, against approx. KWD 4.72million a year earlier. Jazeera has completed a full cycle of record quarterly performance as a result of the turnaround plan (TAP) that started more than a year ago. Moreover, this performance coincided with a period of soaring fuel prices and political uncertainty in some destinations.

Revenue climbed 63% year-over-year in Q2 to KWD 13.9 million, beating NBK Capital’s estimate of KWD 12.3 million by nearly 13%. The carrier generated operating profit nearing KWD 2.8 million (topping NBK Capital’s forecast of KWD 1.7 million) despite an additional KWD 1.1 million expenses stemming from higher fuel prices.

CEO Marwan Boodai had told a satellite TV channel earlier last month that his company was targeting high profitability throughout the year and would see robust profit in the remaining two quarters of FY11.

The stock closed today’s session in the green, leaping 3.31%, or 8 fils, to 250 fils. Nearly 1.94 million shares changed hands through 55 transactions at a total value of approx. KWD 483.5 thousand.