Jazeera Airways net profit up 2%

KUWAIT — Jazeera Airways announced its full-year financial results for 2015. The company recorded a net profit of KD15.4 million and an operating profit of KD13.6 million, reflecting a 2% increase from last year. The board of directors has recommended a 15% cash dividend totaling KD3 million. Jazeera Airways Chairman, Marwan Boodai, said: "I'm pleased to report that 2015 was another profitable year for Jazeera Airways, and a transformational one too. We successfully readjusted the airline's capital to match its size, issued record shareholder payouts worth KD52.7 million in cash, and settled all debts. Today, the company is debt-free, with over KD30.9 million in cash and a growing profitable business. The company's balance sheet has never been as strong as it is today." Jazeera Airways started the year by announcing a divestment of its fully-owned leasing business, which had accounted for less than 20% of its net profit in 2014, by selling its fleet of 15 Airbus A320s for $507 million. The sale led to a board recommendation to adjust the company's capital to match its current operation. On November 4, 2015, shareholders approved the recommendation to reduce the capital from KD42 million to KD20 million through a share buyback program of 220 million shares at the nominal share price of 100 fils. This resulted in a KD22 million shareholder payout, which – when combined with payouts during the year – lifted total shareholder cash payouts during the year to a record payout of KD52.7 million. Earlier in the year, the company had issued cash dividends of KD20 million for the year 2014 and a payout of KD10.7 million in accumulated earnings and other reserves that were required by law to be distributed as part of the capital reduction process. This voluntary share buyback program was the first exercise of its kind in Kuwait and was based on the procedures stated in Kuwait's new Commercial Companies Law (97/2013). In 2015 the company successfully exited the aircraft leasing business to focus on the airline business, issued a record shareholder payout, settled all loans, grew the operating profit, increased the net profit, and attracted more passengers despite the political and economic challenges the region faced. The year 2015 was transformational for the balance sheet, and 2016 will be the year this transformation extends to the product. — SG