Jazeera Airways Co. (ksc) · KSE:JAZEERA
Jazeera Airways Co. (ksc) — Jazeera Airways — H1 2020 Earnings Presentation
33 slides from Jazeera Airways Co. (ksc)'s earnings presentation, Aug 17, 2020
Slide 1: 1H20 Earnings Conference Call
1H20 Earnings Conference Call August 17, 2020
Slide 2: Conference Call Starting Shortly
1H20 Earnings Conference Call Starting Shortly…
Slide 3: Disclaimer
Disclaimer The content and information of this document is only intended to provide users with financial and operational information about Jazeera Airways. No warrant or representation is made by Jazeera Airways for the contents of this document and in no way is the material provided in it intended
Slide 4: Agenda
Agenda Overview of Group During Covid-19 Financial Headlines Operational Initiatives and National Duty Outlook for the Rest of 2020 Financial Review Q&A Photo: Jazeera repatriation flight lands at KWI
Slide 5: The Group During Covid-19
The Group During Covid-19 Kuwait Supporting Full Cargo Decisive Measures International Government Operations: to Safeguard Airport: Efforts: Converted aircraft Financial Position: Suspension of all Operated for full cargo flights Suspended commercial flights repatriation and operating through divide
Slide 6: IATA on Industry in ME and Kuwait
IATA on Industry in ME and Kuwait as of June 2020 Impact on Middle East Impact on Kuwait Passenger Passenger Passenger Airline numbers: capacity: numbers: revenue: -56.1% -46.1% -57.0% -US$7.7 billion Net Employment losses: affected: -US$4.8 billion 33,100
Slide 7: Operational & Financial Headlines
Operational & Financial Headlines Photo: Jazeera launched full-cargo operations following suspension of commercial flights because of Covid-19 pandemic
Slide 8: 1Q20 Operational Headlines
1Q20 Operational Headlines Passengers Load Factor Utilization Yield -6.3% -3.9% -30.7% -5.3% 1Q20: 496.5 k 1Q20: 71.7% 1Q20: 9.5 hrs 1Q20: KWD36.5 1Q19: 529.6 k 1Q19: 75.6% 1Q19: 13.8 hrs 1Q19: KWD38.5
Slide 9: 1Q20 Financial Headlines
1Q20 Financial Headlines Operating Operating Net Revenue Loss Loss -10.9% -266.3% -509.8% 1Q20: KWD18.9 mn 1Q20: -KWD3.9 mn 1Q20: -KWD6.0 mn 1Q19: KWD21.3 mn 1Q19: KWD2.4 mn 1Q19: KWD1.5 mn
Slide 10: 2Q20 Operational Headlines
2Q20 Operational Headlines Passengers Load Factor Utilization Yield -92.0% -33.3% -87.3% +283.3% 2Q20: 43.8 k 2Q20: 44.3% 2Q20: 1.9 hrs 2Q20: KWD174.8 2Q19: 549.1 k 2Q19: 77.6% 2Q19: 14.8 hrs 2Q19: KWD45.6
Slide 11: 2Q20 Financial Headlines
2Q20 Financial Headlines Operating Operating Net Revenue Loss Loss -70.3% -186.7% -182.7% 2Q20: KWD7.7 mn 2Q20: -KWD4.2 mn 2Q20: -KWD3.9 mn 2Q19: KWD26.0 mn 2Q19: KWD4.8 mn 2Q19: KWD4.7 mn
Slide 12: 1H20 Operational Headlines
1H20 Operational Headlines Passengers Load Factor Utilization Yield -49.9% -8.3% -58.6% 13.2% 1H20: 540.3 k 1H20: 68.3% 1H20: 5.7 hrs 1H20: KWD47.7 1H19: 1.1 m 1H19: 76.6% 1H19: 13.7 hrs 1H19: KWD42.1
Slide 13: 1H20 Financial Headlines
1H20 Financial Headlines Operating Operating Net Revenue Loss Loss -43.6% -224.3% -260.0% 1H20: KWD26.7 mn 1H20: -KWD8.2 mn 1H20: -KWD9.9 mn 1H19: KWD47.3 mn 1H19: KWD6.6 mn 1H19: KWD6.2 mn
Slide 14: Terminal 5 Performance
Terminal 5 Performance 1Q20 KWD865.5 k KWD373.5 k KWD149.7 k Revenue EBITDA Net Profit 2Q20 KWD80.5 k -KWD380.2 k -KWD625.4 k Revenue EBITDA Net Profit
Slide 15: Operational Initiatives and National Duties
Operational Initiatives and National Duties Photo: Jazeera converts its Park & Fly facility into the first Covid-19 drive- thru testing center in Kuwait to be operated by Ministry of Health
Slide 16: Safeguarding our Financial Position
Safeguarding our Financial Position Immediate measures taken March 13 Suspension of all commercial flights at KWI until further notice SUSPENDED DIVIDENDS ACTIVATED BANK FACILITIES COST CONTROLS Suspended previous Activated the drawdown of Reduced number of employees recommendation to distribute ban
Slide 17: Special Expatriation Flights
Special Expatriation Flights One-way charter flights for expats flying out of Kuwait Operated expatriation flights scheduled under the directive of the Ministry of Foreign Affairs upon request from local embassies.
Slide 18: Supporting Government Efforts
Supporting Government Efforts Repatriation Passenger Drive-Thru 50,000 Tickets Flights Center Testing to Frontlines • • 6,800 • Jazeera built a Kuwaiti Passenger Reception Jazeera converted its Park & Fly facility for Jazeera offered 50,000 free round-trip citizens flown back Centre (KPRC), where us
Slide 19: Precautionary Measures
Precautionary Measures • Anti-viral disinfection program in which the cabins are sprayed after each flight, as well as fumigates them using anti-viral high pressure disinfection sprays on seats and throughout the cabin. • Disinfectant chemicals used are internationally approved and safe for all pass
Slide 20: Outlook for the Rest of 2020
Outlook for the Rest of 2020 Photo: Part of the anti-viral disinfection program performed before and after every flight
Slide 21: Revenue and Cost Control
Revenue and Cost Control Restructure Pressure Aircraft Recovery of leases on Yields Utilization Outlook • After lengthy • Under pressure due • Travel restrictions • Expectation for negotiations, to fierce on the demand gradual recovery. reached competition from side are limiting • Plan to take deliv
Slide 22: Challenges: Airports Reopening
Challenges: Airports Reopening KWI Traffic Other Airports Safety Restrictions • Kuwait International • Azerbaijan, Georgia, • All returning passengers Airport (KWI) was Saudi Arabia airports still to Kuwait are required to expected to resume closed. Bangladesh and provide a PCR test operations at 30
Slide 23: Financial Review
Financial Review Photo: Jazeera pilots in PPE gear during the repatriation flights
Slide 24: 1Q20 Key Parameters
1Q20 Key Parameters Operating Parameters 1Q19 1Q20 CHANGE YIELD BY QUARTER (KWD) Average Aircraft 9.0 13.7 52.2% Destination Cities 24 31 29.2% Revenue Drivers 1Q19 1Q20 CHANGE Seats 700,777 692,716 -1.2% Passengers 529,640 496,484 -6.3% Load Factor 75.6% 71.7% -3.9% PASSENGERS BY QUARTER (000) Net
Slide 25: 1Q20 Key Parameters
1Q20 Key Parameters In KWD 1Q19 1Q20 CHANGE Major reasons for unfavorable Operating Revenue 21,288,274 18,962,737 -10.9% variances vs. 1Q19 Operating Expenses 18,905,804 22,925,365 17.2% • Yield decrease (primarily due to Operating Profit Covid-19 from mid-Feb) year-on- 2,382,470 (3,962,628) -266.3%
Slide 26: 2Q20 Key Parameters
2Q20 Key Parameters Operating Parameters 2Q19 2Q20 CHANGE YIELD BY QUARTER (KWD) Average Aircraft 9.3 14 50.5% Destination Cities 29 27 -6.9% Revenue Drivers 2Q19 2Q20 CHANGE Seats 707,718 98,844 -86.0% Passengers 549,055 43,793 -92.0% Load Factor 77.6% 44.3% -33.3% PASSENGERS BY QUARTER (000) Net Y
Slide 27: 2Q20 Key Parameters
2Q20 Key Parameters In KWD 2Q19 2Q20 CHANGE Major reasons for unfavorable Operating Revenue 26,037,856 7,736,065 -70.3% variances vs. 2Q19 Operating Expenses 21,192,876 11,937,579 -43.7% • Terminal 5 loss of KWD625 k Operating Profit versus profit of KWD240 k in 4,844,980 (4,201,514) -186.7% 2Q19 Ne
Slide 28: 1H20 Key Parameters
1H20 Key Parameters In KWD Operating Parameters 1H19 1H20 CHANGE 1H19 1H20 CHANGE Average Aircraft 9.2 13.8 33.3% Operating Revenue 47,326,130 26,698,802 -43.6% Destination Cities 27 31 14.8% Operating Expenses 40,756,422 34,862,944 -14.5% Revenue Drivers 1H19 1H20 CHANGE Operating Profit 6,569,708
Slide 29: Fuel Prices
Fuel Prices BRENT Swap Vs. SINGJET Swap SINGJET Swap (USD/BBL) BRENT Swap Fuel as Percent of Revenue
Slide 30: 1H20 Balance Sheet Analysis
1H20 Balance Sheet Analysis • Cash balance has increased due to 2019 profitability coupled with the drawdown of overdrafts and loans in 1H20, which was offset by 1H20 cash losses. • Fixed assets decreased mainly due to the sale and lease back of two engines in 2H19. • Total assets and total liabilit
Slide 31: Q&A
Q&A Photo: Jazeera cabin crew and ground operations prepare to disembark passengers during a repatriation flight to Kuwait
Slide 32: Contact
Contact For more information please contact: Krishnan Balakrishnan Chief Financial Officer krishnan.balakrishnan@jazeeraairways.com Mostafa El-Maghraby Head of Investor Relations investorrelations@jazeeraairways.com Jazeera Airways KSC is listed on the Kuwait Stock Exchange Bloomberg: Jazeera KK Reu
Slide 33: Thank You
Thank You