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Kuwait's Jazeera Air says rights issue vital for growth

Last month airline reported a net profit of $26.9m for Q3 2012.
NEWS, Aviation

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Kuwait-based Jazeera Airways Group said this week it had launched a rights issue for 178 million shares to raise its capital by 78 percent to KD42m ($148.8m).

Jazeera Airways is listed on the Kuwait Stock Exchange and is one of the few fully-private airlines in the Middle East.

Chairman Marwan Boodai told reporters: "This rights issue is of strategic importance for the company and will help fund future growth plans as well as close current high-interest commitments."

The rights issue, which was announced last week and kicked-off on Monday, offered the shares at a nominal value of 100 fils per share.

The subscription period runs until December 31 and is open to existing shareholders, he said.

Last month, Jazeera Airways Group reported a net profit for the third quarter of 2012 of KD7.6m ($26.9m), up 24.6 percent compared to the same quarter last year.

Operating revenue for the quarter rose 5.9 percent year-on-year to KD20.4m, pushing total revenue for the first nine months of 2012 to KD48.7m, up 9.3 percent from the same period in 2011.

Jazeera Airways has a fleet of 15 A320 aircraft, 12 of which are already delivered and placed. The remaining aircraft are scheduled for delivery in 2013 and 2014.

In 2011, the airline carried 1.2 million passengers in total across its network.
 

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