Kuwait City, April 4: Arqaam Capital recommended buying the shares of Jazeera Airways, and expected that the fair price of the share would be 27.5% higher than its market value, to reach 2.15 dinars.
She said that Jazeera Airways is still witnessing a multi-year growth story, with big plans to expand its fleet, enhance the growth of its building business, and restore profits backed by the return of the airline industry to normalcy.
Arqaam Capital expected Jazeera Airways’ revenues to remain high for a longer period to compensate for the rise in oil prices without affecting demand, in light of the increase in the number of passengers after demand was stifled, with life returning to normal and business opening up.
She noted that the company’s strong operational performance before the spread of Covid-19 in the period between 2017-2019 and the return to growth in the wake of the pandemic, has enhanced the credibility of the management’s performance.
Arqaam Capital raised its estimates for the number of passengers on board Jazeera Airways by 16 percent to 3.1 million passengers for the fiscal year 2022, in light of the recovery, which was faster than expected, in light of the strong demand the company is witnessing, whether from tourists or business travelers. .
It expected that Jazeera Airways would achieve profits in the first quarter for the first time during the same quarter in 3 years, and that the company’s net profit would reach 3.3 million dinars. [Read Also: Dismissal of 13000 expatriates in 5 years in Kuwait]
She pointed out that the company’s management’s ability to overcome the challenges of the pandemic and provide excellent performance as soon as the opportunity arises, highlights its strong ability to implement.
Jazeera Airways plans to increase its fleet size from 17 currently to 35 in the next five years, and to continue its rapid growth plan.
Jazeera Airways achieved a net profit of about 7 million dinars during the past year, compared to losses of more than 26 million dinars during 2020, as the company returned to profitability in record time in the third quarter of 2021, which witnessed the continuation of travel restrictions, including the limit From the capacity at Kuwait International Airport and also worldwide, due to the Corona pandemic crisis.
The company maintained its positive performance in the last quarter, achieving a net profit of 7 million dinars, an increase of 164.6 percent over the last quarter of 2020.
Operating revenues rose by 285.5 percent to reach 33.1 million dinars, while operating profits rose by 204.3 percent to 9.3 million dinars.
These profits were supported by an increase in the number of passengers during the year by 48.2% to reach one million passengers, as well as the increase in the load rate by 3.9% to reach 66.8 percent, and the increase in the average return on the seat by 28.6% to reach JD73.9.