Jazeera Airways reported a 47.4% year-on-year decline in third-quarter 2026 net profit to KD 7.1 million ($23 million), as higher fuel prices, regional geopolitical uncertainty and operational restrictions weighed on its financial and operational performance.
Group operating
revenue fell 10.6% to KD 62.1 million, compared with KD 69.4 million in Q3
2025, reflecting reduced operating capacity, lower passenger volumes and
adjustments to the airline's network.
The airline said
average fuel prices surged 55% to $139 per barrel, compared with $90 a year
earlier, resulting in a 28% increase in fuel costs despite an 18% reduction in
block hours.
Operations were also
affected by limited airport operating hours until September 20 and the
continued suspension of connecting passenger traffic through Terminal 5 (T5).
Jazeera Airways
carried 1.07 million passengers during the quarter, down 26.3% from 1.46
million in the corresponding period last year. Its load factor declined by 3.1
percentage points to 74.9%, from 78%.
Ground Handling
Investment and Market Share Growth
Third-quarter
profitability included KD 1.4 million in pre-operating payroll expenses related
to establishing the airline's in-house ground handling operations ahead of
receiving licensing approval in October 2026.
Excluding these
expenses, net profit would have reached KD 8.5 million, representing a 37%
year-on-year decline.
The investment forms
part of Jazeera Airways' strategy to strengthen operational control, improve
service efficiency and optimise costs.
The airline also
recorded growth in ancillary revenue per passenger, which almost tripled to KD
15.6. Meanwhile, its market share at Kuwait International Airport increased to
36.7% in Q3 2026, compared with 31% in the same period last year.
In October, Jazeera
Airways received approval to manage its own ground handling operations, marking
progress in its efforts to improve operational efficiency.
Nine-Month Revenue
Increases Despite Profit Decline
For the first nine
months of 2026, Jazeera Airways reported group operating revenue of KD 177.9
million, up 3.7% compared with the same period last year.
However, net profit
declined 32% to KD 15.7 million, while passenger numbers fell 30% to 2.6
million.
The airline's
nine-month load factor improved by 0.8 percentage points to 77.3%, compared
with 76.5% in the corresponding period of 2025.
The results reflect
significant disruption during the year, including the temporary closure of
Kuwait International Airport for 57 days. In response, Jazeera Airways
implemented its 'Mission Barakah' initiative, relocating its operational base
to Saudi Arabia to maintain vital connectivity for Kuwait.
The airline said the
operation demonstrated its ability to respond to unprecedented disruption while
maintaining essential services.
Marwan Boodai,
Chairman of Jazeera Airways, said:“This year has been exceptionally challenging
for businesses globally, with the aviation industry facing significant
pressures. Jazeera Airways continues to be impacted by regional geopolitical
uncertainty, elevated fuel prices and operating restrictions. This, combined
with the suspension of connecting passengers through Terminal 5, has further
constrained our network potential and growth opportunities. Despite these
pressures, Jazeera Airways maintained profitability, reflecting the agility and
resilience of our business model and the commitment of our hardworking teams.
Looking ahead, our priority remains to safeguard Jazeera Airways’ financial
strength, maintain strict operational and cost discipline, and build more
efficiency while embarking on the next phase of growth. Uncertainties remain
persistent and we will continue to navigate these challenges with prudence and
adaptability, positioning Jazeera Airways to seize emerging opportunities and
deliver sustainable growth.”
Operational
Efficiency and Growth Priorities
Jazeera Airways said
its priorities include restoring operating capacity, optimising its route
network, improving cost efficiency and managing external market pressures.
The airline expects
regional geopolitical developments, fuel price volatility and operating
restrictions to continue affecting its financial and operational performance.
Connecting passenger
traffic through T5 remains suspended, with its eventual resumption expected to
improve network connectivity and create further growth opportunities.
The company said it will continue to focus on financial discipline, operational improvements and long-term strategic investments while adapting to changing market conditions. -TradeArabia News Service
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