Air Arabia reports 70% rise in 2022 net profit

Low cost carrier Air Arabia reported a net profit of Dhs1.2bn for the full year ending December 31, 2022, underpinned by a growth in passenger numbers that topped pre-pandemic levels.

Net profit rose 70 per cent last year, from Dhs720m registered in 2021.

Air Arabia record historical full year 2022 net profit of AED 1.2 billion an increase of 70%, and a turnover of AED 5.2 billion on the back of 12.8 million passengers carried across the group. Read more https://t.co/rPRGhYr9QH pic.twitter.com/W0juC4DRGq

— Air Arabia (@airarabiagroup) February 13, 2023

The airline’s turnover for 2022 reached Dhs5.2bn, 65 per cent higher compared to Dhs3.2bn registered in 2021.

Air Arabia served more than 12.8 million passengers in 2022 from its seven hubs across the UAE, Morocco, Egypt, Armenia, and Pakistan. Passenger figures increased 90 per cent compared to 6.8 million passengers carried in 2021.

The carrier’s average seat load factor – or passengers carried as a percentage of available seats – for 2022 stood at a high 80 per cent.

Air Arabia’s board of directors proposed a dividend distribution of 15 per cent of share capital, equivalent to 15 fils per share, subject to ratification by the carrier’s shareholders.

Fourth quarter
Air Arabia reported a net profit of Dhs356m for the fourth quarter ending December 31, 2022, dipping 24 per cent from Dhs467m registered during a year-earlier period. Fourth quarter turnover reached Dhs1.4bn, increasing 7 per cent compared to Q4 2021.

The airline transported more than 3.6 million passengers from its seven hubs in Q4 2022, up 44 per cent compared to 2.5 million passengers carried during the fourth quarter of the previous year. The average seat load factor stood at 79 per cent.

“Air Arabia’s 2022 record profitability is considered the best in the company’s operating history. Although the year 2022 continued be challenging, the aviation industry has begun returning to normality as airlines and airports worldwide witnessed faster recovery following the drop in demand cause by the pandemic,” said Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia.

“Air Arabia Group maintained its robust growth in 2022 by increasing its fleet size and adding new routes across its global network while launching the operations of its latest joint venture airlines in Armenia and Pakistan.”

The carrier added 24 new routes to its global network in 2022 from its operating hubs, as well as took delivery of 10 new aircraft. It ended the year with a fleet of 68 Airbus A320 and A321 aircraft operating to over 190 routes across the Middle East, Africa, Asia, and Europe.

The group also launched operations of its latest joint venture airlines. In June, Fly Arna, Armenia’s national airline, started its operations from its base in Yerevan, while Fly Jinnah, Pakistan’s new low-cost carrier, started operations in October and added four domestic destinations.

Read: UAE’s Air Arabia, Lakson Group partner to launch Pakistan’s new low-cost airline

In addition, Air Arabia Group had signed an agreement with DAL Group last year to form a JV company based out of Khartoum.

Read: UAE’s Air Arabia, DAL Group announce JV to launch airline in Sudan