Kuwaiti budget carrier Jazeera Airways is blaming adverse foreign currency effects for a first-quarter net loss of KD2.7 million ($8.8 million).
The figure is a reversal of the KD2.3 million profit achieved in the same quarter last year.
Jazeera Airways says the result was “mainly due” to the impact of foreign-currency losses amounting to KD2.5 million.
Passenger numbers for the three-month period increased by over 4% to 1.2 million, but revenues were nevertheless down 4%.
It did manage to generate an operating profit of KD1.3 million for the quarter.
“Last year, headwinds driven by overcapacity, combined with a tough regulatory, geopolitical, and regional landscape put pressure on our year end results,” says chair Marwan Boodai.
He says that, despite “steady” operations in the first quarter, fluctuations in foreign currency have impacted performance.
“However, by staying focused on controlling our operational costs, and nimble and agile to market conditions, we are well positioned to grow in summer and to navigate 2024.”
Jazeera, which appointed a new chief executive during the quarter, says it will operate services to around 63 destinations over the summer.
