Jazeera Airways Profit Falls 47.4% to KWD 7.1 Million as Market Share Rises Despite Passenger Decline

Jet fuel prices surge 55% and operating revenue falls to KWD 62.1 million in Q3 2026, while the airline reports KWD 15.7 million in nine-month profit despite operational disruptions.

Kuwait-based Jazeera Airways reported a 47.4% decline in net profit for the third quarter of 2026, reaching KWD 7.1 million compared with approximately KWD 13.5 million in the corresponding period last year, amid rising fuel costs, operational restrictions and disruptions affecting regional aviation.

According to financial results announced on November 9, the group's operating revenue declined by 10.6% to KWD 62.1 million, compared with approximately KWD 69.4 million in the third quarter of 2025.

Passenger traffic fell by 26.3% to 1.07 million passengers, down from 1.46 million, while the seat load factor declined from 78% to 74.9%.

The airline reported that average jet fuel prices increased from $90 to $139 per barrel, representing a 55% rise.

As a result, total fuel costs increased by 28%, despite an 18% reduction in operating flight hours.

Operations were also affected by restrictions on Kuwait International Airport's operating hours until September 20 and the continued suspension of transit passenger services through Terminal 5.

During the first nine months of the year, Kuwait International Airport experienced a temporary closure lasting 57 days, prompting Jazeera Airways to implement its Baraka contingency plan and temporarily relocate its operating base to Saudi Arabia to maintain air connectivity.

Despite the decline in passenger numbers, Jazeera Airways increased its market share at Kuwait International Airport from 31% to 36.7%, according to company data.

Average ancillary revenue per passenger also rose to KWD 15.6, nearly three times the level recorded in the corresponding period last year, supported by growth in travel-related additional services.

Third-quarter results included KWD 1.4 million in preparatory payroll expenses associated with the airline's plans to operate ground-handling services independently, ahead of obtaining the relevant licence in October.

The company explained that excluding these expenses would have increased net profit to KWD 8.5 million. However, its actual reported net profit remained KWD 7.1 million.

For the January–September 2026 period, the group's operating revenue increased by 3.7% to KWD 177.9 million, while net profit declined by 32% to KWD 15.7 million.

Jazeera Airways Chairman Marwan Boodai emphasised that the airline had maintained profitability despite the challenges, highlighting its continued focus on financial discipline and operational efficiency.

The results demonstrate that an airline's growing share of its domestic market does not necessarily indicate higher passenger volumes or stronger profitability, particularly when operational restrictions affect overall air traffic.

The increase in ancillary revenue also highlights the importance of supplementary services in the business models of low-cost carriers.

Meanwhile, the resumption of transit passenger services through Terminal 5 remains an important factor in Jazeera Airways' ability to strengthen connecting traffic and maximise the potential of its route network.

However, no confirmed date has been announced for the restoration of these transit services.