Beating Analyst Expectations, Jazeera Airways Returns to Profitability With Strong Earnings of KD 4.4 Million for Q3, 2010

By Jazeera Airways Group, PRNE
Sunday, November 7, 2010

KUWAIT CITY, November 8, 2010 -

    - Best Quarter for the Airline in its 5-year run

    - Leads Market Share on all Routes vs. Kuwaiti Carriers

    - New Revenue Streams Introduced With Leasing arm

    - Full Ownership of Fleet Provided the Flexibility

Jazeera Airways Group today announced strong third quarter bottom line
profit of KD 4.4 million, making the quarter its best performing quarter
since establishment in 2005.

    Q3 Financial highlights:             Q3 Operations highlights:
    - Operating revenues: KD 14,046,185, - Flown passengers: 365,163
    - Operating profit: KD 3,426,617     - On-time performance: 94%
    - Net Profit: KD 4,413,120           - Market share as of Sept 30: 40.05%
                                         - Load factor: 70%

Jazeera Airways Group Chairman Marwan Boodai said "This quarter's results
are the direct outcome of the initiatives we've put in place since the
beginning of the year, starting with the 100% acquisition of Sahaab Aircraft
Leasing in February and the introduction of the Turn-Around Plan (TAP) in

"TAP was a plan to reduce our costs, to optimize our network, and to
ensure we operate just the right fleet size for our market given the
overcapacity we've seen dumped in our market over the last year and beginning
of this year. The acquisition of Sahaab perfectly complemented this plan by
providing us a vehicle to place excess aircraft on long-term leases with
world-class carriers. This successfully introduced a new revenue stream for
the company. Together, these initiatives successfully put the airline back on
the road to profitability, as today we operate a profitable airline business
and a profitable aircraft leasing business. The fact that Jazeera Airways
Group owns its entire fleet made this possible."

Boodai added: "Today, we are operating the right fleet size on profitable
routes, our commitment to our passengers is to provide them the best value
fares at the highest operational standards on all routes we operate and our
commitment to our employees and shareholders is to work towards achieving
consistent profitability before growth."

With the introduction of TAP, Sahaab accessed global leasing markets and
placed four Airbus A320s on long term lease with Virgin America, while
Jazeera Airways has been capturing a leading market share month on month on
all of the routes it operates, with the exception of its destinations to
Saudi Arabia where it is restricted to a lower seat capacity compared other

Market share as of Sept 30th

               Route               Market           Route        Market Share
    Kuwait-Alexandria (ALY+ HBE)     43%     Kuwait-Deirezzour       100%
    Kuwait-Amman                     34%     Kuwait-Doha             13%
    Kuwait-Aleppo                   100%     Kuwait-Dubai            18%
    Kuwait-Assiut                    64%     Kuwait-Istanbul         18%
    Kuwait-Bahrain                   21%     Kuwait-Luxor            54%
    Kuwait-Beirut                    35%     Kuwait-Mashhad          28%
    Kuwait-Damascus                  41%     Kuwait-Sharm El         42%

Winner of Arabian Business Magazine's 'Best in Aviation 2010' award and
Gold Winner of Magnum Opus 2010 awards, Jazeera Airways operates to 17
destinations across the Middle East.

About Jazeera Airways Group: Based in Kuwait, Jazeera Airways Group is
the holding entity for Jazeera Airways, a Kuwait-based airline, and Sahaab
Aircraft leasing.

Jazeera Airways was established in October 2005 and has a fleet of 11 new
Airbus A320s serving 17 destinations across the Middle East, North Africa and
Turkey. To date, the airline has flown over 6.5 million passengers since
commencing operations in October 2005. In 2009, the airline carried over 1.8
million passengers, capturing over 22% of the market share and making it the
largest operator at Kuwait Airport. 2010 passengers' figures will be
announced on February 2011. For more information:

Sahaab Aircraft Leasing was established in October 2008 and fully
acquired by the Group in 2010. The company acquires and leases high-utility
commercial aircraft for customers. For more information:

Reporters may contact: Fawaz Al-Sirri + 965(6)6622448 / fawaz at

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