Jazeera Airways confident of a better year after difficult 2009 and start to 2010

Losses in 2009 and 1Q2010 have not dampened Jazeera Airways’ expectation of reporting a profit in 2010. With regional traffic still growing rapidly and yield levels continuing their resurrection in the Middle East, the outlook for 2010 is much better than it was for 2009. Chairman Marwan Boodai is still upbeat about the possibility of finishing 2010 with a profit, while COO, Reinhard Kossack, stated at the beginning of May-2010 that he is sure the carrier will be profitable this year 2010. The turnaround will be driven by the turnaround initiatives that were put in place in 4Q2009 and 1Q2010. Notably, the reconfiguration of the carrier’s network and steps to increase capacity to destinations such as Lebanon, Damascus and Cairo over the peak summer period are expected to help. [1395 words]

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This report contains the following subheadings:

• Tough end to 2009, start to 2010
• Competition and overcapacity
• Capacity outstripping passenger growth
• Cutting costs, but fuel evaporates gains
• New rights issue for acquisition of Sahaab Leasing

This report contains the following charts and tables:

•  Jazeera Airways quarterly net results: 2007 to 2010
• Jazeera Airways destination map: May-2010
• Middle East international capacity: Jan-2009 to Mar-2010
• Jazeera Airways passenger traffic: 2006 to 2009
• Kuwait International Airport passenger traffic: 2004 to 2009