A Study on Cash Flow
statement of Jazeera Airways
Pvt. Ltd
Submitted to :
Dr. Sachin Ayareker
Submitted By:
Sereno Pinto
Aviation Industry
First commercial flight on February 18 1911.
(IATA) announced that it expects the global
airline industry to have a total revenue
of $736 billion.
World wide passenger numbers are expected
to cross 4 billion.
Domestic air traffic is growing in double digits.
Government Of India is also pushing this
industry.
Company profile.
Jazeera Airways is the largest private airline
operating out of Kuwait.
Established in April 2004, Jazeera Airways is
the first non-government owned airline in the
Middle East.
Jazeera airways happens to be one of the best
LCC in the Middle East.
Currently operates with 9 aircrafts.
Biggest competitor is FlyDubai.
Cash Flow
Cash follow means, inflow and outflow of
cash. Cash flow is the movement of
money into or out of a business, project,
or financial product.
Cash flow is divided into 3 major parts i:e
Operating, investing and financing activity.
Shareholders, management and
Government officials are the most
interested parties of a Cash flow
statement.
Objectives of the Study
To understand the impact of operating,
financing and investing activities on cash
resources.
To find out the causes for changes in
cash balance.
To study the ways of cash inflow and
cash outflow.
To know how much cash is available in
the firm.
Research Design.
The study was conducted on the cash flows of
the last 5 years.
This study is conducted to identify the area
where cash flow measures are relatively weak
and inadequate and through that to make
recommendation to improve the cash flows.
Data analysis and interpretation.
Net Profit before prior items.
Net Profit before prior items
120
100
100
92,25565504
80
64,74509556
60
49,3917829
40
Net Profit before prior items
20
0
2013
-20
-40
2014
-17,31550934
2015
2016
2017
Graph showing operating profit.
Operating Profit
100
100
89,90639
90
80
63,30398
70
60
50
Adjustment for non-operating items
39,90984
34,10864
40
30
20
10
0
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
Dividend Paid to Shareholders
Dividend paid to shareholders
500
450
400
350
300
Dividend paid to shareholders
250
200
150
100
50
0
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
Findings
 The cash generated from operations is also declining at a steady
pace, this shows that there is a major area where the company has
to capitalize and start making more cash.
 Jazeera has always used its resources wisely and hence in the year
2015, they made a huge amount on financing activity.
 The dividend paid to shareholders has started from the year 2014
and was the highest in the year 2015.
 The cash reserves of the company are falling at an alarming rate
and it is very necessary for the company to keep track of this and
make sure they devise an go around strategy for replenishing of the
cash reserves.
Conclusion:
Traffic at Kuwait International Airport (KIA) has
increased.
Major market share.
Connecting Kuwait to many destinations in Kuwait
Indian Sub continent.
Suggestions
•Buy More aircrafts as the company has no debt.
•Expanding their destinations.
•Add Value to the service.
Learnings
 Ancillary revenue of Kuwait station:
 Sky sales
 Duty free sales, Park and fly sale, Parking lot sale
 Reconciliation of sale reports
 Outstation
 Outstation expenses
 Reconciliation of all expenses
 Bank Reconciliation
 Analyze bank Gains/Losses
 Learnt how to calculate GST for the aviation sector.
Thank You.