Kuwaiti carrier Jazeera Airways is confident that it remains a going concern, with sufficient resources, after turning in a KD5.6 million ($18.3 million) third-quarter net loss.
The performance brings overall net losses, for the nine months to 30 September, to KD15.5 million.
Jazeera Airways says there is a “risk of another wave of pandemic” and possible “prolongation” of its impact on air transport.
But it has a “sound” liquidity position with KD23.3 million in available funds and forecasts that it has “sufficient resources” to continue to operate.
Jazeera Airways has not taken any financial impairment, but has accepted a KD1 million charge for ineffective hedging over the nine months.
The airline has been converting aircraft to handle cargo flights, and is negotiating deferral of aircraft deliveries and the restructuring of lessor payments.
Its cost-saving measures include reducing staff numbers, requesting a voluntary salary reduction of 50% since March.
The company’s impairment assessment was based on a reduction in air transport demand over 2020-21 and a return to pre-crisis performance from 2022, taking into account the economic situation in Kuwait and the operation of two or three flights weekly to the capitals of large countries once restrictions are cancelled.
Jazeera Airways’ revenues for the nine months fell by 60% to KD32.8 million, but operating costs were down by only 30% in the period.