Posted on: 31 March 2015 by Ross McSweeny
Jazeera Airways Group has reported the full-year 2014 revenue of KD68.8 million, up 4.9% from 2013, and its pre-transaction net profit was KD17.4 million, up 4.4% from 2013.
However, as a result of the carrier’s fleet sale from its leasing business, the company’s bottom line for 2014 was affected by a one-time non-recurring loss leading to a net loss of KD2.88 million for the year.
Jazeera had a record 4Q performance last year earning a pre-transaction net profit of KD3.8 million, an increase of 47% from on 4Q13.
As a result of the pre-fleet sale result, the board of directors recommended record dividends and payments to shareholders totalling up to KD50 million in the form of special dividends for 2014 and a share buyback programme.
Jazeera Airways Group chairman, Marwan Boodai, said, “Our divestment from the leasing business came at the right time for us and our buyers. Our fleet’s new owners are getting modern assets that are already placed with airlines across the world and generating revenue from day one. We are now focused on our star performer, Jazeera Airways, which is now more nimble, asset-light, cash-rich and debt-free to pursue new opportunities to serve our customers.”
The fleet sale transaction is reflected in 2014’s financial accounts that will be available next month. As a result of the fleet sale transaction, Jazeera Airways Group will receive KD148.5 million in cash. The proceeds will be used to settle all of the company’s outstanding debt, amounting to KD116.6 million as of end of 2014.