Kuwaiti budget carrier Jazeera Airways is facing a tricky beginning to the second half of the year, after a sharp decline in second-quarter performance.
But the company says it is maintaining a “positive outlook” for the full year.
Jazeera points out that the 12-day Israeli-Iranian conflict caused a reduction in operations during June, contributing to a 7.5% fall in revenues – to KD48.6 million ($159 million) – for the three-month period.
It adds that longer flight times from airspace closures partly offset the lower operating expenses.
Operating profit sank by 28% to KD4.8 million, although net profit was 11% down owing to a one-time KD1.5 million gain from engine disposal.
Jazeera acknowledges that the beginning of the summer season has been marked by a “demand dislocation”, but says it expects the demand to shift to August-September.
It adds that it foresees “positive momentum” from the re-opening of Syrian routes as well as additional traffic rights to India.
Jazeera’s airport terminal operation fared better, slightly increasing both operating and net profit during the second quarter.
