Jazeera Airways (J9, Kuwait) is contemplating setting up new bases outside Kuwait should the opportunity arise as it remains optimistic about expansion despite Middle East geopolitical challenges, according to CEO Barathan Pasupathi.
He told the Abu Dhabi news site The National that the low-cost carrier is concentrating on expanding direct routes from Kuwait to capitalise on strong demand and diversifying travel segments to capture more leisure and pilgrimage traffic. The airline is also exploring new markets, including southeastern Europe. In the second quarter of 2024, Jazeera Airways launched new direct routes from Kuwait to Kraków John Paul II International in Poland and Batumi in Georgia. Pasupathi added the carrier was looking at opportunities in markets where Kuwait is renegotiating bilateral air service agreements, which could potentially open access to secondary cities in India.
In March 2023, Jazeera Airways submitted a bid for a low-cost airline licence in Saudi Arabia, specifically targeting Dammam King Fahd International Airport and is awaiting an official response.
"We went through all the steps of a tendering process and completed the due diligence to establish a hub in Dammam, twice. We are still awaiting an official announcement," Pasupathi said. "We do believe we have the best credentials and have submitted the best plan, but this is a tendering process so it can go either way."
The airline reported a 37.3% increase in its quarter two 2024 net profit to KWD5.4 million dinars (USD17.7 million) and a 6.2% rise in operating revenue to KWD52.6 million (USD172.3 million) fuelled by strong demand for summer and Hajj travel.
Pasupathi - appointed CEO in late March - highlighted a strategic focus on cost management and operational efficiency, with an announcement expected by the fourth quarter of this year. "There is an inflationary environment, and as an airline, we really need to manage our costs to keep fares affordable and accessible to customers, so Jazeera will be embarking on certain strategic shifts," he said.
He said Jazeera Airways plans to streamline operations by bringing maintenance and ground handling in-house. It also aims to lower its unit costs by improving its aircraft use and reassessing the seat density on the A321-200Ns entering the fleet by 2026, he said. Jazeera Airways has eight of the A321neo and twenty A320-200Ns on order, with an existing fleet of eleven A320-200Ns and thirteen A320-200s, according to ch-aviation fleets data. The final decision on the engine order for these new jets is expected by year-end.
