UAE’s Air Arabia reports Dhs44m net loss for Q3 2020

UAE’s low-cost carrier Air Arabia earned Dhs44m in net loss for the third quarter ending September 30, 2020, as a direct result of the impact of the Covid-19 pandemic on the aviation industry.

The figure marks a 109 per cent decline from Dhs471m earned during Q3 of last year.

The airline’s turnover for the third quarter of 2020 equaled Dhs294m, 80 per cent down from Dhs1.43nbn earned during a year-earlier period.

A total of 665,456 passengers were served from all five hubs in the same period.

The third quarter 2020 witnessed partial resumption of scheduled flights to few destinations across the Air Arabia network. This, combined with the cost control measures resulted in limiting the net loss of third quarter. Operations during the second quarter relied largely on repatriation, charter and cargo flights.

Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia, said: “We are pleased that Air Arabia registered these results in the third quarter amidst the continuing impact of Covid-19 on the travel industry worldwide. The early measures taken by the management team to control overall cost while seizing revenue opportunities under current circumstances helped limit net loss.”

The third quarter witnessed the launch of Air Arabia Abu Dhabi with its first flight to Alexandria in July. This was followed by additional routes from Abu Dhabi International Airport to Cairo, Sohag, Dhaka, Kabul, Chattogram and Khartoum.

Read: New low-cost carrier Air Arabia Abu Dhabi to launch daily flights to Cairo

Al Thani added: “The third quarter witnessed the resumption of a limited number of flights in selective markets and we are hopeful that more markets will gradually resume in time. We have also launched operations of Air Arabia Abu Dhabi during this unprecedented time reflecting the confidence and commitment we have towards the aviation industry in the UAE and the region.”

“The year 2020 continues to be a challenging one for the world economy including the aviation sector. However, the fundamentals of the industry remain very strong and air travel will continue to play a vital role in economic recovery.”

Air Arabia today operates scheduled, charter, and cargo flights across its operating hubs in the UAE, Morocco, and Egypt. It has also upgraded its customer experience journey to include safety measures.

In October, the carrier announced free global Covid-19 cover for all passengers travelling on its flights departing from Sharjah and Abu Dhabi.

Read: Air Arabia announces free global Covid-19 cover for all passengers