Jazeera, the prominent Kuwaiti low-cost airline, has attributed a decline in first-quarter profits to fluctuations in global currency markets.
The airline has acknowledged a decline in profitability compared to the same period last year.
By Aditya M
Jazeera, known for its extensive regional network and budget-friendly fares, has consistently shown profitability in recent years. However, the ever-shifting currency landscape seems to have impacted its bottom line in Q1 2024.
This Kuwaiti LCC has reported a net loss of KD2.7 million in Q1/2024 against the net profit of KD2.3 million in the same period last year. Although there was spike in the PAX by 4% but the revenue curve tilted down by 4%. Jazeera Airways blames a significant portion of this Q1 profit decline on foreign currency exchange losses totalling KD2.5 million.
Despite of all this the LCC stationed to maintain the operation profit of KD1.3 million this quarter.
In a statement, a Jazeera spokesperson highlighted the challenges posed by currency fluctuations: "We've navigated a complex economic environment in the first quarter. While passenger demand remains strong, significant fluctuations in exchange rates have put pressure on our profitability."
The spokesperson further added, "Jazeera remains committed to operational efficiency and is actively exploring strategies to mitigate the impact of currency fluctuations on future performance."
Looking Ahead
Despite the Q1 dip, Jazeera's core business appears strong. The statement from the spokesperson emphasized continued passenger demand, indicating a healthy market for the airline's services.
Jazeera's focus on mitigating the impact of currency fluctuations suggests that they are confident about navigating these economic challenges and achieving profitability in the coming quarters.
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