Kuwait’s budget carrier, Jazeera Airways, said that it is bullish on the Egyptian market this year and expects double-digit growth, boosted by an improvement in the Kuwaiti economy.
"I still believe we can do a double- digit growth this year," Marwan Boodai, Jazeera Airways Group chairman, told The National on the sidelines of the annual general meeting of the International Air Transport Association, the trade association that represents airlines from around the globe.
“We have positive signs. The demand is picking up … the population of Kuwait is growing, more projects are coming up, government expenditure, infrastructure, and in general the Kuwaiti public have got more disposable income so they travel a lot.”
Jazeera Airways’ first quarter net profit was down 41.8 per cent year-on-year at 2.1 million Kuwaiti dinars (Dh27.3m). Revenue slipped to 13.8m dinars from 14.7m dinars.
Jazeera focuses on two-and-a-half hour flights out of Kuwait. The carrier said it plans to add one or more destinations this year; however, its main objective is to increase capacity to existing destinations.
Mr Boodai said that Egypt could be one of the destinations to which it could add capacity. Currently the Kuwaiti carrier flies to six destinations in Egypt, including Cairo, Alexandria and the Red Sea resort of Sharm El Sheikh.
“Egypt in general is now picking up. Cairo is very important for us. Kuwait holds the second biggest population of immigrant Egyptians after Saudi Arabia, so you can imagine the demand,” said Mr Boodai.
“Many Egyptians in Kuwait own houses in Sharm El Sheikh, but in general Egypt is coming back again. The past two-three years, the Egyptian market was driven by the Egyptian population living in Kuwait, today there are many Kuwaitis and tourists coming back to Egypt.”
Jazeera Airways was established in 2004, ending the national dominance of Kuwait Airways. Jazeera flies to 19 destinations across the Middle East, including Dubai, Manama, Beirut and Amman.
The company’s shares trade on the Kuwait exchange. Their range over the past year is between 430 and 540 dinars. Yesterday they closed at 455 dinars.
selgazzar@thenational.ae
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