This is after exceeding the minimum requirements for liquidity and market capitalisation in the two previous consecutive years.
Jazeera is the only listed company to receive an upgrade.
Chairman Marwan Boodai said: “We are very pleased to see Jazeera Airways listed among the largest Kuwaiti companies at Boursa Kuwait. As the only company at Boursa Kuwait to offer investors access to the growing travel and aviation sector, the upgrade confirms the success of the Company’s strategy and business model which positively contributes to the local economy.”
Jazeera Airways has announced an ambitious growth plan to increase its fleet from 17 aircraft today to over 35 by 2025 to support its network expansion.
At the end of 2021, the airline had completed an order with Airbus for 28 new aircraft: twenty A320neos and eight A321neos. The order is valued in excess of $3.3bn at list prices.
Boodai added: “Jazeera’s continued growth is without a doubt attributed to its team of experienced professionals who have been successful at overcoming regional and global challenges over the past years. As we continue to move forward, the Board and Executive Management remain focused at creating value investment opportunities that attract local and foreign investors.”
In 2020, Jazeera’s liquidity exceeded the minimum requirement of KD216.0 thousand by Boursa Kuwait, reaching KD 235.5 thousand. In 2021, the Company’s liquidity reached KD402.8 thousand, exceeding the KD281.0 thousand benchmark set by Boursa Kuwait for the year.
As for the market capitalisation, Jazeera’s market capitalisation stood at KD157.3 million in 2020, twice the minimum requirement of KD78 million for companies listed on the Premier Market at Boursa Kuwait. In 2021, the Company’s market capitalization increased to KD283.8 million, over four times the minimum requirement by Boursa Kuwait.
Jazeera Airways returned to profitability during the third quarter of 2021 following the two-year impact of the Covid-19 crisis that started in March of 2020. The Company achieved a net profit of KD11.8 million during the quarter. Its operating revenue increased by 421.7%, reaching KD31.7 million, while its operating profit stood at KD12.8 million, a 332.2% increase and the operating margin was 40.5%.
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