Kuwait’s Jazeera Renews $153m Loans as Boodai Takes 17% Stake
Kuwait-based low-cost carrier Jazeera Airways has renewed a series of banking facilities totaling KWD46.83 million (approximately USD152.5 million), reinforcing its financial flexibility as it continues to navigate a competitive regional aviation market. The airline confirmed that the renewed facilities include a mix of bank guarantees, credit lines, a revolving loan facility, foreign exchange services, and overdraft arrangements.
In a disclosure filed with Boursa Kuwait, Jazeera Airways said that KWD28.69 million (around USD93.2 million) of the renewed facilities have already been utilized. The carrier emphasized that the renewal does not have any material impact on its current financial position, indicating that the facilities are primarily intended to support ongoing operational and treasury requirements rather than signal new borrowing pressure.
The renewal comes as airlines across the Middle East continue to balance fleet growth, rising operating costs, and fluctuating demand. For Jazeera Airways, which operates a single-type Airbus A320 family fleet and focuses on point-to-point services from Kuwait, maintaining access to diversified financing tools is seen as a key element of financial resilience. The airline has previously highlighted disciplined cost management and conservative capacity growth as central to its business model.
Separately, Jazeera Airways disclosed a notable change in its shareholder structure. Boodai Reliance Real Estate, the investment arm of Boodai Corporation, announced that it has completed the acquisition of a 16.65% stake in the airline. The transaction represents 36,639,089 shares of Jazeera Airways’ issued share capital.
While the acquisition has been completed, the airline noted that the transaction remains subject to final regulatory approvals. Once cleared, the investment will make Boodai Reliance Real Estate one of the airline’s largest shareholders, potentially strengthening long-term strategic alignment between the two Kuwaiti groups.
Market observers view the combination of renewed banking facilities and a significant new shareholder as a signal of stability rather than restructuring. The financing renewal ensures continued liquidity, while the equity investment underscores sustained investor confidence in Jazeera Airways’ business model and outlook.
Together, the developments highlight Jazeera Airways’ focus on maintaining a solid financial foundation as it pursues measured growth and operational stability in an evolving regional aviation landscape.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com