Jazeera Airways’ shareholders have approved the Board of Directors’ recommendation to distribute 32% in cash dividend, the equivalent of KD7 million ($22.9 million) for the year ended December 31, 2021.

The company held its Annual General Meeting (AGM) virtually today (March 27) from its headquarters in Jazeera City, Kuwait.

The dividend announcement comes after two years during which dividends were suspended because of the Covid-19 pandemic. Jazeera has returned a total of KD91 million in cash to shareholders since 2013, the equivalent of over four times its paid-up capital.

Jazeera Chairman, Marwan Boodai, said: “Jazeera Airways has once again showcased the success of its business model in adapting in times of crisis, safeguarding its cash position and shareholders’ rights. The airline grabbed new opportunities that were presented during the pandemic, enabling it to expand its services, generate revenue from new sources, and return to profitability in record time.

“Today, Jazeera is a success story for the Kuwaiti private sector as well as the regional and global aviation sector. The airline continues to provide reliable services to its customers, delivered by an experienced team, adds value to its shareholders and contributes to the local economy.”  

Jazeera Airways returned to profitability for the year 2021, a period which continued to be affected by the Covid-19 pandemic and restrictions on travel, reporting a net profit of KD7.1 million for the year, up 126.8% from the previous year. The earnings were supported by an increase of 48.2% in the number of passengers flown, which reached 1.0 million, while load factors increased by 3.9% to 66.8% and yield increased by 28.6% to KD73.9.

Operating revenue for 2021 stood at KD80.4 million, up 94.3%, and operating profit increased by 152.2% to KD10.8 million.

2022 outlook and milestones

With its return to profitability, Jazeera is headed to continued growth, expanding its network with new routes that offer direct flights from Kuwait to tourist destinations as well as underserved destinations that cater to a latent demand of customers living in the Middle East by connecting them between their country of residence and home country. The network expansion is supported by a new order of 28 aircraft placed with Airbus. Jazeera will be taking delivery of A320neo and A321neo models to serve short and medium-haul routes.

The company is also expanding its infrastructure and facilities to offer supporting aviation services. Jazeera has already achieved a new milestone in that direction as an “Approved Training Organization” certified by Kuwait’s Directorate for Civil Aviation, enabling the airline to conduct training programs for pilots and cabin crews from its headquarters in the State of Kuwait.

Boodai concluded: “We are excited for our future planned developments. We look forward to expanding to new destinations where we see strong and revenue-generating opportunities, while also remaining prudent against the uncertainties of recent geopolitical developments.” - TradeArabia News Service