JAZEERA Airways Group registered a net profit of KD3.0 million in the first quarter of 2015, an increase of 44.6% from the same quarter last year. The strong growth was driven by an increase in demand and higher load factors, the company said in a statement Tuesday. Operating revenue reached KD12.9 million, up 3.5% from Q1 2014. Operating profit hit KD2.4 million, up 141.2% from Q1 2014. Jazeera Airways Group Chairman Marwan Boodai said: “With a 44.6% increase in net profit from Q1 2014, this quarter's earnings clearly reinforce our decision to focus on the airline business. The opportunity for the airline continues to be at home despite the political challenges we see in the region. We operate in an area that has one of the fastest growing populations in the world and enjoys one of the highest disposable incomes in the world.” Last month, the company's board recommended record dividends and payments to shareholders totaling up to KD50 million in the form of special dividends for 2014 and a share buyback program. All payments will be executed separately over the next few months with the last payment expected to take place in August 2015, pending regulatory and shareholder approvals. On January 15, 2015 the company announced the sale of its leasing fleet of 15 Airbus A320s for $507 million (KD148.5 million). The sale was part of a strategic move to exit the aircraft leasing business and focus on the company's star performer — the passenger airline Jazeera Airways, which generated 80% of the company's net profit historically. The sale transaction is reflected in 2014 financial accounts and is expected to close by June 30, 2015. Discontinuing operations represents income from the leasing business. Jazeera Airways Group's share buyback program will be the first voluntary share buyback program exercise in Kuwait based on the new share buyback procedures under Kuwait's new Commercial Companies Law. The board has committed to executing the dividends and the payouts as soon as shareholder and regulatory approvals are secured. — SG
