Al Jazeera Airways reports net profits of 8.6 million Kuwaiti dinars in the first half

Jazeera Airways announced its financial results for the first half of 2026, recording net profits of 8.6 million dinars, a 10.3% decline on a year-on-year basis. This decrease was attributed to the significant rise in fuel prices and reduced operational capacity, which limited the positive impact of improved yield per seat during one of the most challenging periods in the company’s history.

During most of the first half of the year, Jazeera Airways faced exceptional challenges, including the temporary closure of Kuwait International Airport starting February 28. This was followed by ongoing operational restrictions that significantly impacted the company’s flight network and limited its operational capacity for most of the period. Following the closure, the airline launched the “Barakah Initiative” to ensure Kuwait remained connected to the world by operating alternative flights via the Kingdom of Saudi Arabia, before resuming full operations from Terminal 5 on May 3.

Despite these operational challenges, operating revenues rose by 13.4% year-on-year to reach 115.8 million dinars. This growth was driven by sustained strong demand for travel, commercial performance efficiency, and a robust recovery in passenger traffic upon the resumption of operations. Additionally, high demand during the holiday and Hajj seasons in the second quarter contributed to increased passenger numbers and improved flight yields, reflecting the resilience of the company’s business model despite ongoing operational constraints.

During the first half of the year, Jazeera Airways operated 11,106 flights, offered 1.9 million seats, and transported 1.5 million passengers, achieving a seat load factor of 79.1% while maintaining a market share of 35.9%. The company’s operational flexibility and commercial efficiency were also reflected in its second-quarter results, where group operating revenues increased by 45.5% to 70.7 million dinars, supported by strong travel demand.

In the second quarter of 2026, the company continued operations under limited hours at Kuwait International Airport, with transit flights suspended amid intermittent airport and airspace closures. These factors affected operational efficiency and capacity. Jazeera Airways recorded net post-tax profits of 9.6 million dinars in the second quarter, demonstrating its ability to deliver strong performance despite exceptional operational circumstances.

Maram Al-Bouaidi, Chairman of the Board of Directors of Jazeera Airways, stated, “The first half of 2026 was one of the most challenging periods in Jazeera Airways’ history. The temporary closure of Kuwait International Airport imposed unprecedented operational challenges; however, it also demonstrated the resilience of our business model, the efficiency of our teams, and our ability to respond swiftly to maintain operational continuity.”

He added, “Although profitability was affected by rising fuel prices and reduced operational capacity, we achieved a 13.4% growth in revenues, supported by sustained travel demand and our commercial efficiency. Through the ‘Barakah Initiative,’ we succeeded in maintaining Kuwait’s connection to the world during an exceptional period, laying the groundwork for continued performance flexibility in the second half of the year.”

Al-Bouaidi continued, “Jazeera Airways continues to implement its long-term strategy despite constrained operational conditions, by investing in expanding its destination network, enhancing the customer experience, developing human resources, maintaining financial discipline, and focusing on delivering sustainable value to our shareholders.”

Jazeera Airways has proven its ability to navigate one of the most difficult periods for the aviation sector in Kuwait. It was the first airline to resume operations following the closure of Kuwait International Airport by launching the “Barakah Initiative” on March 11. The company adopted an alternative operational model departing from the Kingdom of Saudi Arabia, maintaining connections between Kuwait and its key destinations. To facilitate this, the company relocated 14 aircraft and more than 500 employees to the Kingdom, coordinating over 9,000 bus transfers across the border to transport passengers to their flights. During this period, Jazeera Airways transported over 200,000 passengers on more than 1,500 flights.

Temporary operational hubs established at airports in Qaisumah, Dammam, Jeddah, and Medina in the Kingdom of Saudi Arabia, as well as in Cairo, supported Hajj operations and accelerated the restoration of services from Kuwait, further strengthening the company’s market position.

During the first half of the year, Jazeera Airways continued to expand its destination network by launching direct flights to Milan Bergamo and Aleppo. It also completed the project to update its fleet seats with lightweight models, increasing capacity to 180 seats per aircraft and enhancing operational efficiency.

**Future Outlook**

Jazeera Airways continues to execute its long-term strategy despite ongoing operational challenges and market uncertainty. While travel demand remains below historical levels and some operational restrictions persist, the company is focusing on expanding its destination network, strengthening commercial partnerships, and investing in digital transformation and operational excellence to ensure the delivery of sustainable value to customers and shareholders.

Thanks to its flexible low-cost business model and disciplined cost management, Jazeera Airways holds a strong position that enables it to capitalize on recovery opportunities as market conditions improve.