Jazeera Airways K.S.C.P. (JAZEERA) Earnings Call Transcript & Summary

Hello, everyone. This is Mirna Maher from EFG Hermes, and welcome to Jazeera Airways First Quarter 2022 Results Conference Call. I'm pleased to be joined today by Rohit Ramachandran, Jazeera CEO; Krishnan Balakrishnan, CFO; and Mostafa El-Maghraby, Head of Investor Relations. I'll now hand over the call to management for a quick presentation, and then we'll open the floor for the Q&A session. Rohit, please go ahead.

Good afternoon to everyone and Ramadan [ curtain ]. I hope you have been having a good month, and thank you for joining us today for the Jazeera Airways' earnings webcast for the first quarter of the year. Well, the first quarter of this year started as a continuation of the close of last year. It might seem a long time ago now, but Omicron had a negative impact on the very start of the year with some seasonal return flights post the New Year holiday affected by the government of Kuwait putting in some additional restrictions on travel, including, in some cases, quarantine. This, coupled with geopolitical tensions in Kazakhstan, you might remember, there was an attempted revolution and snowstorms in Istanbul meant that January was a relatively slow month with quite a few disruptions. On the contrary, February proved to be a very good month as the government lifted nearly all COVID restrictions and travel bans, which widely reopened the travel market in time for the national holiday vacation, which was one of the best weeks we have operated in for some time now. March followed the same path as February, but was eventually marked with the Russia and Ukraine tensions, an event which despite not having any direct impact on Jazeera, it meant that fuel prices skyrocketed. And of course, we reacted to that by increasing our prices on all subclasses to all destinations to counter that. Overall, as you know by now, the first quarter turned out to be a good one for Jazeera. A good one -- actually, the best first quarter results on record in terms of number of passengers as well as profitability. Let's start with a review of our first quarter operational performance, which is on Slide 7, shown on your screen now. During this quarter, Jazeera carried 708,000 passengers, which is the highest quarterly count on record for the company, driven by our 17 airplane fleet. This compares not only to 104,000 passengers in the first quarter of last year. But in almost the entire year of last year, we carried 1 million passengers. And in the first quarter, we cared 3/4 of that. Again, we have the distorted base effect. And to put things in perspective, it's good to remind you that we carried 530,000 passengers in the first quarter of 2019, which was the last period that was relatively unaffected by COVID. So in many ways, it's better for us to use 2019 as a benchmark, which was relatively full operations. Load factor came in at a relatively healthy 75.2% in line with 2019 while utilization was 11.6 hours, up significantly from the low numbers witnessed during the same period last year, as you might recall, it was just 3.3% -- 3.3 hours. The easing of restrictions during the quarter meant that there was gradually more supply coming into the market, driving prices lower from their highs of the third and fourth quarter of last year. Yield came in at 47.6 KD, which was lower than the third and fourth quarter as prices generally normalized gradually, but of course, much higher than 2019 first quarter yields, which was around 37 KD. In Slide 8, we review the financial highlights of the quarter. Revenue came in at KWD 35.7 million, while operating profit was KWD 5.3 million and net profit was KWD 3.8 million. It's probably better that I skipped the year-on-year comparisons as they don't provide much insight. Perhaps, again, the first quarter of 2019 will make more sense with a revenue at KWD 21 million and net profit was less than half that of this quarter, only 1.5% -- KWD 1.5 million. In Slide 9, you can see a breakdown of our ancillary revenue. I'm particularly pleased with our cargo performance. We dived into this business during COVID. You will recall that cargo traditionally was not a significant segment of business for Jazeera and of course, all low-cost carriers, which focus predominantly on the passenger side. It's great that we have managed to retain it even when we have a full load of passengers and baggage. And this focus will continue. So despite the available payload being dramatically reduced because now we are back to our core business of passengers and their baggage, we still carried practically the same amount of cargo and generated the same revenue, just lowered by 7.7%. Ancillary revenue overall continues to provide an integral revenue stream for the airline. And we focus that almost 9% of our overall revenue, and this is on the rise. E-commerce as well is back to more normalized levels as our operations continue to pick up. Moving on to the terminals performance. We discuss operations at Jazeera Terminal T5 during the quarter in Slide 10. I have to admit that it cheers me up walking around the terminal and seeing how lively it has become with active retail stores and lines of arriving and departing passengers with loved ones driving them to and fro the airport. This resumption of activity yielded a revenue of KWD 2.1 million during the quarter, of which close to KWD 1.4 million were driven by the regulatory charges that we collect. In comparison, T5 revenue was less than KWD 1 million for the first quarter of 2019. Net profit came in at KWD 1.4 million this quarter compared to a loss of KWD 400,000 in the first quarter of last year. And a net profit of less than 100,000 KD in the first quarter of 2019. In the next section we'll dig deeper into our operations during this quarter. In Slide 12, you will see overall improvement in all metrics some of which we have already discussed. This is a very interesting slide, and I think gives a lot of insight into the nuts and bolts of our business. You can see some detailed analysis of our market share and traffic distribution. I'm glad to announce that we had the largest market share in the history of Jazeera during any quarter with a whopping 26% of passengers moving through T5 and being carried by Jazeera Airways. A quick glance at the graph on the bottom left showing the evolution of our market share over the last 4 years tells you how we used the last couple of years to gain ground. In terms of passenger distribution, you will notice that the main markets like the GCC, the Indian subcontinent and Egypt remain dominant in our portfolio of routes, but the offering is gradually becoming more diverse and scattered. This diversification is very healthy. This should be witnessed in more detail and in larger scale during the coming months when more travel destinations start contributing to the mix. In Slide 14, we go over some of the terminal details. As discussed previously, we are ramping up our capacity to have a smooth ride during this summer and close the year with the capacity -- handling capacity of the terminal almost 4 million passengers for this year, which should be enough for this year. There are, of course, significant plans ongoing to further raise the capacity of this terminal by another 1 million or so over the course of next year. Our retail lease is progressing well. 86% of our total leasable space is now leased and even the revenues they're generating are on the upswing. I'm very happy to announce that our duty-free operations, which we took over as [ to have ] duty-fee starting of December of last year, is now fully profitable and generating quite a healthy contribution to the bottom line of the terminal. The VIP lounge, which caters to high-end traffic out of T5 as well as T1 also picking up month-on-month. And we expect them, along with other concessions to have a good contribution during the year. In this Slide #15, we go over some of the interesting long-term initiatives that will have a very positive impact from a cost control perspective. During the quarter, Jazeera became an approved training organization certified by Kuwait's DGCA to train pilots and cabin crew in Kuwait. A large part of this was earlier being handled by Kuwait Airways as an outsourced service for us. And as we build up in scale, this gives us independence, this gives us flexibility, it raises the quality and standard of training and, of course, reduces cost. Further, we are in the process now of procuring a full flight simulator that will move our training and testing facilities for flight crew, more in-house and will be less reliant on expensive simulator sessions at Kuwait Airways and Bahrain, which are the 2 that we use currently. Finally, a quick outlook for the rest of the year as we move into Slide 17. As far as the summer travel season goes, we see a strong appetite for travel and foresee continued strong demand for travel. Operations and revenue are expected to continue to improve with capacity at Kuwait returning to pre COVID levels. Cost-wise, the increase in fuel prices and the volatility, it will put some pressure on costs. But as you know, Jazeera has already increased prices by between 5 and 10 KD on all our routes and was successful in passing through this fuel cost increase as well as a little bit extra. We will continue our network expansion with a new list of summer destinations to launch in a couple of months' time. This includes the likes of Vienna and Prague and Salalah in Oman. These expansions, of course, will go in parallel with a focus on enhancing efficiency by shifting more operations and maintenance in-house as well as training. Of course, to focus on our continuous line-by-line cost control. With that, I complete my section and hand it over to our CFO, Krishnan, who will present the finance part before we move to the Q&A section. Krishnan, over to you.

Thank you, Rohit. Good afternoon to everyone. If I can take you to the Slide #19. The -- most of the parameters have already been briefed by -- briefly touched upon by Rohit However, I will just highlight a couple. One is the aircraft. The number of aircraft we had in the first quarter of 2022 was 17 as compared to 14 aircrafts in the first quarter of '21. As a result, obviously, we had a higher number of block hours anyway naturally, but also because of other reasons, restrictions being removed. We had 17,688 block hours in '22 first quarter, which was a jump of 321% compared to the last year. Then going on to the next slide, where we have the performance. The net profit summary. Rohit the next slide. So if you look at the operating revenues went up by about 339%. Secondly, because we had, of course, a higher number of passengers, about 580% increase in the passenger numbers. And we had increased revenues also from the terminal about 498% was a jump. However, the yield partially offset this jump because there was a drop in the yield compared to the first quarter of last year. Operating costs, of course, had to naturally go up with the increased sectors and the block hours and also the higher price, which was 60% more than the previous year, as you will see [indiscernible] later. During the month -- during the quarter first of 2022, we placed a deposit of about 15 million KD to Airbus. This was towards the purchase of aircraft. And we also bought one particular spare engine, which will support our new aircraft operations. And these were all paid from our own internal resources. So that was about KWD 18 million that we paid out but the cash balance only reduced by about KWD 7 million. That was because we also generated about KWD 10 million because of operations. So the profits actually added the cash -- to the cash. So the increase in the fixed assets primarily is because of the increase in the deposit to Airbus as well as the purchase of 1 engine. And with that, I conclude my section and hand it over back to Rohit.

Thank you, Krishnan. Let me just stop sharing. So that's -- yes, I'm now available, Mirna, for any questions.

[Operator Instructions] We'll take the first question in the chat from Rajat Bagchi. Can you please comment on the sustainability of market share going forward? The strategy seems to work well till now. So it would be interesting to know how you see the future trend when competition scales up.

Thank you very much, Rajat. I appreciate that. The reality is as we grow, we have to ensure that we maintain and increase a proportional share of the market, which means we expect from ourselves that we should not have the same market share at 17 airplanes today that we had with 7 airplanes 4 years ago. In addition to that, the expansion of our network, the aggression of our sales team, the fact that now the majority of our fleet are brand new, new generation A320neo aircraft. All of this means that customers see value in flying short-haul trips with Jazeera rather than expensive legacy airlines. I think I expect the market share not only to be sustainable but grow in line with the growth in fleet at a minimum. I hope that answers your question, Rajat.

The next question is how do you expect load factor and utilization in hours to improve going forward? Is there an internal target that you have in mind?

Is this also from Rajat, Mirna?

Yes. The next couple of questions are all from Rajat.

All from Rajat, okay. So as you know, Rajat, the first quarter is typically the weakest or certainly 1 of the 2 weakest quarters for any airline in this part of the world. And the same is also true for Jazeera. I expect during the course of the next 2 quarters, at least load factors will improve significantly from what it is at the moment. Certainly, the third quarter, we expect a significant improvement. In terms of utilization as well, the fact that the first month of the year, we didn't move back to full utilization until the end of March, India was still under the air bubble, and it's only at the end of March that India moved back to the full unrestricted air services agreement operation. All this means that we are gradually ramping up the utilization. In maturity, to answer your question, I expect our average utilization over the course of the year to be not less than 14.5 hours per aircraft per day. That is, of course, in line with the highest utilization for Airbus narrow-body aircraft in the world. And Airbus also recognizes how hard we utilize our assets. It helps, of course, that we now have our own very capable maintenance in-house and don't have to rely on third-party suppliers.

The third question from Rajat Bagchi as well. How should we think about total passenger numbers in 2022? And how do you expect average yields for the rest of the year to perform?

Sure. So Rajat, as you know, from my earlier calls that you have attended, I don't generally give forecasts. I'd rather talk about the period that has been closed. And I can give you a general outlook moving forward. I can tell you that barring any unforeseen circumstances in terms of passenger numbers and many other metrics 2022 is likely to be a record year.

We'll take the next question from Nishit Lakhotia.

Congratulations on a strong quarter, Rohit. I have a few questions. First, on the market share. If I remember correctly, 50% of the market was generally reserved for the Kuwait-based airlines and 50% was for the other international airline. Is this still the case currently -- or this is no longer the case? So that's my first question. Second, given -- you mentioned that you're expanding the terminal capacity possibly next year to 5 million, but last time we entered of some other updates as well on the terminals that would be available. Any progress on that thing. And third, on the routes for India. I remember once you're mentioning that you were carrying more passengers in the air bubble to India than before that. So now that the air bubble is out, what kind of upside do you see from the India routes? Because you already had a very strong traffic to India under [ Air Mobile ], if I can recall it correctly. So these are my 3 questions.

Thank you, Nishit, for your good wishes as well as your questions. Let's start with your first one with your assumption that 50% of the share was reserved for Kuwaiti carriers. I can't tell you how I wish that was true. Unfortunately, that is not the case and that was never the case. Kuwait adopts an open sky policy, and there is no historical sort of a framework where any share of the market is reserved for anybody. There are some sectors where they have restricted air services agreements, for example, India, where Kuwaiti carriers and Indian carriers can only fly a certain number of seats per week between each other. In that case, it's 12,000 seats per week. But in terms of who wins those seats, it's a completely wide open market, and there is no limitation or restriction placed on any market share going to any particular airline. So I have to correct you there, that it's an open market. Airlines compete for passengers aggressively. And in this situation, I think -- if you go back in history, it used to be the other GCC carriers that used to dominate out of Kuwait. And I mean, you will recall that many GCC carriers used to have multiple wide-body frequencies per day into Kuwait which, of course, they still do, but we are able, as you see, not in one big jump, but on a sustained effort over a period of 4 years, claw our way up to the position that we see. There were, in fact, 1 or 2 months, I recall this year, that Jazeera Airways was the largest airline in terms of market share operating out of Kuwait. So that, I hope, answers your question. Regarding the capacity of T5. As you know, T5 was originally designed with a capacity of 3 million. And then with the initiatives that we have put in place, it's now going to be by the end of the year, 4 million. We have -- for example, we started the terminal with 10 check-in counters. Today, we have around 21 check-in counters. We are in the process of further enhancements, adding more ground gates, adding ramps, separation of arriving and departing passengers, which cuts down the number of security checks to just one. Of course, that's a comprehensive security check, but you don't need to go through 2 or 3 separate security checks as in other terminals in Kuwait. So those are the efforts which will help us get to 4 million this year and beyond next year. Regarding your other question, as you know, we have to ensure that we find adequate infrastructure and a good home for the expanded Jazeera fleet, but it's not in my nature to talk about any expansion in that area until I have a signed document to share with you as our investor relations partners and investors and bankers. So please bear with me. I can assure you that there are big plans regarding infrastructure. I will share with you the plans as we prudently do once all the Is are dotted and the Ts are crossed. Your third question regarding routes for India and whether we will actually see a change compared to the air bubble. You're right, we have a stronghold on the market to and from India. We -- even before COVID, we had a very good operation into India during COVID with the air bubble, Also, we had a very good operation into India. The problem with the air bubble, although it allowed us to continue operation was it was volatile. It was erratic. It was -- it used to change the capacity used to change month-on-month depending on how much Indian carriers used to want to operate into Kuwait. So some months, it used to be more, some months, it used to be less. Of course, whatever capacity we operated, we always did well, but it was erratic and not sustainable. I'm pleased that it's gone back to the air services agreement. This allows us to plan. Our share to India is somewhat marginally increased compared to pre-COVID levels. in terms of the number of seats that we have available. And so that's good. But I also have a very close engagement with the Ministry of Civil Aviation in India as well as DGCA India to support the government of Kuwait's efforts to actually have a new bilateral agreement with India. The last one was signed in 2007 where the Indian community population was 1/3 of what it is currently. And I think it's very important for both sides even for Indian carriers now Indian carriers are expanding. It's in everyone's interest to actually have a new agreement with expanded rights for carriers in both directions. I'm actually visiting the government of India the second week of next month, and this will be one of the high points on the agenda. I hope this clarifies your question.

Rohit, I think you've already answered that, but we have a couple of questions in the chat on the new terminal that you talked about in the Q4 results call. Are there any updates on that? Or if you can provide an update on the status of the approval, potential capacity and expected completion date.

Right. So I will not confirm or deny. And I don't think I spoke about with any certainty about a new terminal. I can tell you that infrastructure for Jazeera and the group is very important. We are making very good progress on all infrastructure projects for the company. But as usual, I would request you to bear with me while I don't wish to speak about something that's not signed, sealed and delivered. So I will come back to you at the appropriate time when I have something formally to announce. But I want you to rest assure that the future in terms of infrastructure, will blow all our investors away.

The next question is, how should we think about sustainable profitability from the terminal business given the targeted passenger capacity of 4 million. And how should we think about the new initiatives related to the duty free [ terminal ].

Sure. So I can tell you that with the aggressive growth that Jazeera has been experiencing over the last several years. The terminal will always be 2 steps ahead. So the terminal capacity will never be a limiting factor for the airline. And I've already laid out the fact that our current Terminal T5, was at 3 million. It is now comfortably expected to accommodate 4 million, and we also have short-term plans interim before the rest of the infrastructure is ready for -- in the long term. That by next year, we should increase the terminal capacity to 5 million. So I want to assure you that terminal capacity will never be a limiting factor for the growth of the group in total. Duty Free actually has a very bright future, exceeding all our expectations. We have recruited last year a very bright General Manager for this business who comes to us from Dufry, the world's largest duty-free company. And from scratch, he's taken this business leaps forward. And what you see now in terms of profitability, we still haven't turned on all the taps like in-flight, duty-free and arrivals duty free and satellite locations for the duty free. And this is just the main duty-free store. A we are quite tough on him. In fact, we charge him rent. So not only he has to generate as a business, he has to pay the terminal rent for the space as well as he should because this is a separate subsidiary. So I'm very optimistic about the duty free business. And of course, in maturity, nothing stops us from further bidding for and winning duty-free rights in other terminals and other cities. So I consider this a very good stand-alone but related business to our core activities.

The next question is from Mohamad El Masri. Could you please provide an update on the listing of the terminal operations?

That, I'm happy to say, is not my call. This is something that the Board will review and decide on, I would say, towards the end of the year at the earliest. I think it's very important for a few more milestones to be crossed. And this also has to do with all the related infrastructure for the terminal and the airline. So yes, there is a possibility that could happen. I think there is a discussion that needs to happen towards the end of the year. And at that time, I think I'll be able to share more details.

We have a couple of questions from Mohamad [indiscernible] . Could you shed light on the expected number of passengers and the number of advanced bookings during the upcoming [indiscernible] period and how do these numbers compare to 2019 and 2018?

Thank you very much, Mohamad. I'm afraid I will not share individual period, arbitrary period numbers for future expectations. However, I can tell you that the coming 10 days or 2 weeks is probably going to be the busiest period this year so far for Jazeera, tremendous bookings, tremendous utilization. It's going to be a good one. And it should be because -- the first 2 weeks of Ramadan traditionally are quite weak for travel. And we can -- we plan for, we budgeted for, and we are seeing in reality from the third week onwards, a dramatic upswing in the number of bookings as well as, of course, yield because that is managed very carefully as well.

The next question from Mohamad. Have you witnessed any decline in demand or recent loss in market share due to the introduction of the 5 KD and then fuel surcharge?

Well, I think nobody likes price increases, but we think people understand that this is because of geopolitical global events. I think people understand that the increase in oil price has resulted in increase in prices across a wide range of commodities and services. And we are actually held hostage to the situation. I would say that in the vast majority of routes and the vast majority of the period, these prices have been sticky. In some cases where our competitors have not reacted logically. We have responded and rolled back to some extent these prices in order to always be aggressive in the market. But overall, I think there's been a very good net positive for the airline as a result of these initiatives. These are very normal. I think we watch all our input costs carefully, and we want to make sure that as much as possible, we defray these input costs by charging in terms of revenue to compensate for these cost increases.

We'll take the next question and the chat from [ Albert ] [indiscernible] . Regarding the drop in yields in Q1, is that more a function of the weakness in January or a normalization towards the end of the quarter?

That's a great question. And actually, that's the combination of the 2. I would say despite what we all consider to be mathematically a drop in yield -- this yield is still very high. If you look at our regional peers and indeed, the entire historical period of Jazeera as well. So yes, it has reduced since Q3 and Q4, but it's still very healthy in our opinion. Yes, as business moves through further expansion, more traffic returns to normal. These yields might still come under some pressure. But I think you have seen now, this is my 21st investor call. And at each call, I sense some doubts among investors saying, "Can these guys continue doing this for the next quarter?" And the reality is, yes, it's not new. This is not just last quarter, occurrence or characteristic. This is every quarter, you have pressures on the business from different directions. And the team manages to digest all of this and come back with stronger and stronger results. You're right to have your concern, and that's very true. But this is something that is very manageable and that we do day to day.

We have a couple of questions from [ Varun ]. The first one is, at current fuel prices, where does the company anticipate the yield to settle for this year?

Again, it's difficult for me to forecast because yield is a function of demand and supply, largely, of course, we do have some influence on it, but we do make sure that we remain aggressive in the market. For that matter, I can't even predict fuel price. I mean, that's a million and in some cases, a billion-dollar question. just in the last 30 days, I mean, it has gone all the way from $135 a barrel to below $100 a barrel. So we watch it very carefully. Our pricing tracks that -- it's difficult for me to predict, but I can tell you that we intend to digest this within the course of our normal business.

The next question is how many aircraft will the company have by the end of the current year and next year?

That's a great question. One of the things we are working on is expediting our aircraft order with Airbus, quite hard to do because of the limitations within the Airbus assembly line. If we are lucky and we are able to crack it, I expect another 2 airplanes to come in this year. Otherwise, they will come in early next year. So there is a possibility, and I will share with you during the next call whether we have been able to do it or not. Our current plans don't depend on these airplanes. These airplanes are a bonus if it does come in, but -- if we are able to take advantage of certain disruptions in the Airbus narrow-body market globally, we are trying to do that and induct at maybe 2 new airplanes before the end of this year.

We have a question from [ Robin Thomas ]. With regards to your target of 5 million passengers for next year. Kuwait has a population of 4.3 million. Can you elaborate more on how you see the ability to gain more passengers through your terminal?

Robin, I'd love to correct you because I didn't say the airline's target is 5 million passengers. I said that the terminal will have a capacity of 5 million passengers. So that's just one detail. The second point is not directly linked to the population of the country. As you know, we have business, of course, that originates in Kuwait. We have business that originates in other countries that's traveling to Kuwait. And then we have quite a sizable segment of business that we carry from A to C via B, which is Kuwait. So not directly linked. Of course, population demographics in your home base is an important consideration, but we carry quite a lot of traffic, either to Kuwait or through Kuwait? I hope that answers your question.

The next question from [ Albert ] [indiscernible]. Does the 5 to 10 KD surcharge cover all the extra fuel costs incurred by Jazeera?

In most cases yes. There are some differences, but I would say in the vast majority of cases, yes.

We have a question from [ Varun ]. Could you please let us know what is the percentage of e-commerce revenue?

If I remember correctly, it's about 1/3, but I can ask our CFO to give you the latest data about e-commerce business, which includes, of course, our own website, our own mobile app and what we distribute through other websites and OTAs, online travel aggregators. I believe it's about 1/3 of our business, which is one of the highest in this region. But I can verify that and have Krishnan respond to Varun privately.

And the next question is from Mohamad El Masri. Can you please comment on the effect of rising oil prices on your margins?

That is the big question, Mohamad. Rising oil prices will definitely have an impact on margins. It is something that needs to be managed, it is something that so far we have been successful in managing. As you recall, the increase in fuel price is not a phenomenon of just this month. It's been steadily rising over the course of, I would say, 4 months now after businesses and demand started rising post COVID. The key for us, on one hand, is to increase revenue in line with the added cost of fuel, which we've been successful in doing, and we will be successful in doing going forward as well. And the second is to further even more aggressively control our costs. I think both are very important. It's ingrained into the DNA of the company at all levels. And -- and I'm confident that we'll be able to manage this blip in terms of higher increased fuel prices. I think Mirna, we will take the last question for now.

Okay. We have a couple of questions from [ Talos Samudi ]. Can you please explain the reason behind the decline of cargo revenue?

Well, okay. So cargo revenue, it's, in my view, incorrect to see this as a decline. If you remember, in Q1 of last year, we had virtually no passenger business, right? So as is the case, although we were not experts in the cargo business, we dived into it in order to learn this business from scratch and make sure that we leave no stone unturned, nothing on the table, and we started operating cargo services by stacking not only cargo in our cargo holds but also in many cases, in the cabin, as you will recall, some dramatic pictures from last year. And during this period, when we had virtually no passengers, cargo played a big role in keeping our head above water. What I'm happy about is this year, first quarter is a completely different situation. We are back in full business. We have very high load factors. Those passengers carry their own baggage. And typically, you would see a dramatic decline in the capacity available, the salable capacity available for cargo. Despite this cargo revenue has dropped only 7%, although if you see the number of passengers carried is up sevenfold or 8-fold compared to last year. So I actually consider that this a win. I'm not sure if you agree with me, but I consider this a win.

We have the last question from [indiscernible] concerning the World Cup in Qatar. It's expected to attract a lot of passengers. Are there any plans to increase your traffic to Qatar?

Excellent question. The answer is yes. We have a task force within the company that's focused on this business. Typically, we operate 1 or maybe 2 services into Doha per day. During the period from the middle of November to the middle of December, approximately we have requested 5 slots per day with the possibility of adding to that even further. So yes, there is a focused effort to drive traffic through Jazeera for this particular event.

Thank you. Rohit...

If there are no further questions, then Mirna, I thank you and EFD Hermes for hosting this call. I thank all of our investors and partners for joining this call, and I look forward to seeing all of you speaking to all of you in about 3 months' time with the Q2 results. Until then, early Eid Mubarak to everyone and stay safe. Thank you.

Thank you. Thank you, everyone, for joining, and have a good rest of the day.