Al-Jazeera's Net Profit Drops 47.4% in Q3 to KD 7.1 Million

- Marwan Boudi:

- Al Jazeera maintained its profitability despite pressures, reflecting the resilience of its operations and its ability to adapt.

- Our priority is to preserve the financial strength of Al Jazeera and adhere to operational discipline.

- The company continues to be affected by geopolitical instability in the region, rising fuel prices, and operational restrictions.

- We continue to address challenges wisely, enhancing our readiness to seize opportunities for sustainable growth.

- The “Barakah” initiative demonstrated the company’s operational resilience and its rapid response to exceptional disruptions.

- Airlines worldwide faced exceptional challenges and pressures this year.

Al Jazeera announced its financial results for the third quarter of 2026, recording net profits of 7.1 million dinars, a 47.4 percent decline compared to the same period last year.

Operating revenues for the group reached 62.1 million dinars, a 10.6 percent decrease compared to 69.4 million dinars in the third quarter of 2025.

These results reflect the challenges the company faced in an operational environment impacted by geopolitical instability in the region, sharp increases in fuel prices, and operational restrictions, including the limitation of airport operating hours until September 20, and the continued suspension of transit passenger movements through Al Jazeera’s Terminal 5.

The average price of jet fuel rose by 55 percent to reach $139 per barrel, compared to $90 per barrel last year, leading to a 28 percent increase in fuel costs despite an 18 percent reduction in operational flight hours.

All these conditions, along with reduced operational capacity and adjustments to the route network, contributed to a decline in passenger numbers, aircraft utilization rates, and profitability.

Third-quarter profits were affected by salary expenses of 1.4 million dinars incurred by the company during the preparation phase to operate its own ground handling services, prior to obtaining the license in October 2026. Excluding these expenses, net profits would have been 8.5 million dinars, a 37 percent year-on-year decline. These initial investments are part of Al Jazeera’s long-term strategy to enhance control over its operational processes, improve service efficiency, and optimize cost efficiency.

During the third quarter of 2026, Al Jazeera transported 1.07 million passengers, a 26.3 percent decrease compared to 1.46 million during the same period in 2025. The seat load factor also declined by 3.1 percentage points to reach 74.9 percent.

Conversely, average additional revenue per passenger increased nearly threefold to reach 15.6 dinars. In October, the company received approval to take over the management of its own ground handling operations. Al Jazeera also increased its market share at Kuwait International Airport from 31 percent in the third quarter of 2025 to 36.7 percent in the same period of 2026.

Amid ongoing operational challenges, Al Jazeera recorded group operating revenues of 177.9 million dinars for the first nine months of 2026, a 3.7 percent increase compared to the same period last year, while group net profits amounted to 15.7 million dinars, a 32 percent decline.

The first nine months of the year saw Kuwait International Airport temporarily closed for 57 days, followed by Al Jazeera’s implementation of the “Barakah” initiative, which involved relocating its operational base to Saudi Arabia to maintain Kuwait’s vital air connectivity. This initiative demonstrated the company’s operational resilience and its ability to respond swiftly and decisively to exceptional disruptions.

For his part, Marwan Boudi, Chairman of the Board of Directors of Jazeera Airways, said: “This year, companies worldwide have faced exceptional challenges, and the aviation sector has come under significant pressure. Jazeera continues to be affected by geopolitical instability in the region, rising fuel prices, and operational constraints. Furthermore, the ongoing suspension of transit passenger movements through Jazeera’s Terminal 5 (T5) has imposed additional restrictions on the potential expansion of our route network and growth opportunities.”

Boudi added: “Despite these pressures, Jazeera has maintained its profitability, reflecting the resilience of its business model and its ability to adapt, alongside the dedication and sustained efforts of our teams. As we look ahead, our priority remains preserving Jazeera’s financial strength, committing to operational discipline and strict cost control, and enhancing efficiency as we enter a new phase of growth. We will also continue to address ongoing challenges with wisdom and flexibility, strengthening Jazeera’s readiness to capitalize on future opportunities to achieve sustainable growth.”

Jazeera continues to focus on its future growth plans while simultaneously restoring operational capacity, improving the efficiency of its route network, enhancing cost efficiency, and managing the impact of external market pressures.

The company expects that geopolitical conditions in the region, along with fluctuations in fuel prices and operational constraints, will continue to materially affect its operational and financial performance in the coming period. Transit passenger movements through Jazeera’s Terminal 5 (T5) remain suspended, and the resumption of this service would constitute a significant positive development, contributing to enhanced air connectivity across the company’s route network and supporting future growth opportunities.

Jazeera reaffirms that its priority remains maintaining financial discipline, improving operational performance, and advancing its long-term strategic investments, while adapting to the continuous changes in its operating environment.