Kuwait’s Jazeera Airways has been upgraded to Boursa Kuwait's Premier Market after it exceeded the minimum liquidity and market capitalisation requirements over the past two years.
The budget airline is the only listed company to receive an upgrade on the Kuwait stock market, it said on Sunday.
“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 chairman Marwan Boodai said.
The Premier Market includes listed companies that are relatively larger and more liquid.
Jazeera Airways inclusion comes as it seeks to expand its operations to tap into the increase in travel.
The budget airline unveiled an ambitious growth plan to increase its fleet to more than 35 by 2025, up from 17 aircraft currently, to support its network expansion.
At the end of 2021, the airline had completed an order with Airbus for 28 new aircraft, including 20 A320neos and eight A321neos. The order is valued at more than $3.3 billion at list prices, according to the airline.
“As we continue to move forward, the board and executive management remain focused at creating value investment opportunities that attract local and foreign investors,” Mr Boodai said.
Jazeera’s market capitalisation stood at 157.3 million Kuwaiti dinars ($522.27m) in 2020, twice the minimum requirement of 78m dinars for companies listed on the Boursa Kuwait's Premier Market.
In 2021, the company’s market capitalisation grew to 283.8m dinars ($942.3m), more than four times the stock market's minimum requirement.
Jazeera Airways was established in 2004 with a capital of 10m dinars. The company’s capital currently stands at 22m dinars.
It reported a net profit of 11.8m dinars in the third quarter of last year on the back of higher revenue.
The airline reported a loss during the same period in 2020 as coronavirus-induced travel restrictions disrupted its operations.