Jazeera Airways turns to loss after Kuwait airport closure

Kuwait-listed Jazeera Airways swung to a loss after revenue fell in the first quarter due to the closure of Kuwait International Airport.

The airport was closed for 57 days, the longest closure of any airport in the region, after an Iranian drone hit the radar system on March 15.

The airline reported a net loss of KD1.1 million ($4 million) between January and March, compared to a net profit of KD4.7 million in the same period last year.

Operating revenue declined 16 percent year on year to KD 45 million, the budget carrier said in a statement.

The airline reported a strong operational performance in the first two months of the year, with stable demand and services to about 70 destinations.

Chairman Marwan Boodai said the first quarter was significantly impacted by the geopolitical crisis that disrupted operations and financial performance in March.

Capacity declined 28 percent to 1.1 million seats, while passenger numbers fell by 26 percent to more than 925,000 amid regional conflict.

Jazeera Airways resumed operations via an integrated overland-air corridor through Saudi Arabia, restoring connectivity to 27 destinations across 11 countries as of March 11.

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The dual-hub operating model resulted in more than 1,500 flights and the transport of over 200,000 passengers.

The airline operated an average fleet of 23 aircraft.

With Kuwait International Airport resuming operations late last month, Jazeera Airways remains optimistic about a recovery in travel demand ahead of the summer season.

The airline is offering more than 2 million seats across its network, relaunching services to 11 destinations and introducing two new routes to London and Milan.

Founded in 2004, the airline’s major shareholders are The Boodai Group and Jassim Mohammad Al Mousa General Trading.

The airline’s shares closed 0.4 percent lower at KD1,578 on May 13.