Jazeera Airways rebuilds network as costs soar and demand shifts
Air bridge to survival, Jazeera Airways reroutes operations through Saudi ‘lifeline’ airports; from crisis to corridor, Gulf solidarity keeps Kuwait’s aviation alive as war reshapes skies; next phase will be defined by resilience, managing risks while staying ready to seize opportunity in a rapidly changing aviation landscape -- Chairman of Jazeera Airways, Marwan Boodai
Chairman of Jazeera Airways, Marwan Boodai, has described Saudi Arabia’s Qaisumah and Dammam airports as the “lungs” through which Kuwait continues to breathe amid ongoing regional disruptions, praising Riyadh for opening its airspace and extending full operational support to Kuwaiti carriers.
In media remarks, Boodai said the crisis has underscored an exceptional level of Gulf solidarity, highlighting the pivotal role played by Saudi civil aviation authorities and operational teams in both Dammam and Hafr Al-Batin in sustaining air connectivity.
Jazeera Airways has managed to restore around 40 percent of its pre-crisis operational capacity by rerouting passengers via Saudi Arabia, where part of its fleet and operations have been relocated. The airline expects to increase capacity to 50 percent by the end of April and to 60 percent by mid-May, provided current arrangements remain in place.
A full return to normal operations, however, hinges on the readiness of Kuwait International Airport and the resumption of regular air traffic, a decision ultimately governed by Kuwait’s civil aviation authorities, Al-Rai daily reports.
Despite the disruption, the airline has kept its fleet active, shifting aircraft, crew, and logistics to Saudi bases. In addition to maintaining passenger services, Jazeera has continued transporting essential goods and food supplies, with air cargo emerging as a critical component of its operations.
Boodai noted that travel patterns have shifted dramatically. Leisure travel has declined, replaced by essential journeys to destinations such as Egypt, the Indian subcontinent, and key European cities including Istanbul. “Travel is no longer a luxury,” he said. “It has become a necessity.”
Currently, the airline operates to more than 36 destinations, with outbound flights recording load factors of around 85 percent, while inbound flights range between 50 and 55 percent. Jazeera has also emerged as one of the largest operators at both Qaisumah and Dammam airports during this period, deploying around 20 aircraft shortly after relocating operations.
The most significant challenge, Boodai said, has been logistical rather than operational. The airline has effectively established a temporary ground hub in Kuwait’s fairgrounds, replicating airport services including check-in, baggage handling, and customer support. More than 180 buses are now in operation, transporting passengers on journeys of up to four hours to Saudi airports.
While cross-border coordination has eased passenger movement, including the waiving of transit visa fees, the shift has added complexity to travel.
Ticket prices have surged sharply, rising by as much as 150 to 170 percent on some routes. Fares that once ranged between 80 and 90 dinars are now reaching up to 200 dinars. Boodai attributed the increase to higher insurance premiums, elevated airport charges, and a sharp spike in jet fuel prices.
He stressed that the real shock lies not in crude oil prices alone, but in refined jet fuel costs, which have more than doubled. Fuel, once accounting for up to 35 percent of operating expenses, now represents as much as 55 percent, making it the single most influential factor in pricing.
While fuel remains available within the Gulf, supply constraints are emerging at certain international destinations, prompting some airports to require airlines to carry additional fuel for return journeys. Globally, some carriers have begun scaling back operations due to both rising costs and supply concerns.
Boodai expects the impact of the crisis on ticket prices and operations to persist for up to six months, even if hostilities subside, citing ongoing disruptions to global supply chains.
Insurance costs have also risen by up to 60 percent, reflecting heightened geopolitical risks. However, these are expected to ease more quickly once stability returns, unlike fuel prices, which may take longer to normalize.
Financially, the full impact of the crisis remains unclear, particularly as it coincided with a traditionally slow period for airlines. Still, Boodai expressed cautious optimism about the second half of the year, anticipating a rebound in demand as pent-up travel needs are released.
The airline has strengthened its financial position by postponing dividend distributions, boosting liquidity to over $240 million, sufficient to cover up to nine months of operations, providing what Boodai described as a strong safety buffer.
Looking ahead, Jazeera Airways is positioning itself to navigate risks while capitalizing on emerging opportunities. Saudi Arabia remains a key strategic market, with expansion plans under consideration, particularly as shifting market conditions may create access to aircraft and routes previously unavailable.
“The next phase,” Boodai said, “will be defined by resilience, managing risks while staying ready to seize opportunity in a rapidly changing aviation landscape.”
