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Jazeera Airways plans lower dividends on coronavirus fears

Jazeera Airways plans lower dividends on coronavirus fears
The board also proposed reducing operational capacity
JAZEERA
JAZEERA
-2.99% 551.00 -17.00

Mubasher: The board of Jazeera Airways has lowered its recommended cash dividends to KWD 7 million or 35 fils per share, representing 35% of capital, down from a previous recommendation of 67.5%.

The recommendation is due to the potential impact of the novel coronavirus (COVID-19) outbreak on the airline’s operations,  according to a stock exchange filing on Thursday.   

The board further proposed reducing the operational capacity and postponing the short-term wet-lease of two additional aircrafts, until the travel restrictions imposed by the Kuwaiti government on specific routes are lifted.

The decisions, made during a meeting on Wednesday, are part of precautionary directives to mitigate the virus’ impact on the safety of Jazeera Airways’ passengers and crew alike.  

Last year, the Kuwaiti airline’s net profits leaped by 124.1% on an annual basis to reach KWD 14.9 million.