Air Arabia profits jump 27% on passenger, network growth

Air Arabia reported double-digit growth in both profitability and passenger numbers in 2023.

Air Arabia’s net profit surged 27 per cent, reaching a record Dhs1.5bn compared to the previous year’s Dhs1.2bn.

Turnover rose 14 per cent to Dhs6bn in 2023, compared to Dhs5.2 billion in the previous year. This significant increase reflects strong passenger demand and the airline’s strategic network expansion.

Air Arabia successfully catered to the growing travel appetite within the MENA region and beyond, attracting passengers with its competitive fares and extensive route network.

The airline transported 16.7 million passengers, a 31 per cent growth over 2022, which saw 12.8 million passengers travel with the airline.

Load seat factor was consistent with 2022 at 80 per cent.

Air Arabia’s Board of Directors proposed a dividend distribution of 20 per cent of share capital, which is equivalent to 20 fils per share.

Air Arabia Q4 2023 highlights

In Q4, Air Arabia reported a net profit of Dhs225m, 37 per cent less than the Dhs356m recorded in the same quarter last year, which had witnessed record high yield margins. Revenue earned was Dhs1.54bn, an 11 per cent rise over the same period last year. The load seat factor was 80 per cent, with 4.2 million passengers travelling with the carrier in Q4.

Other key achievements

Air Arabia added a total of 26 new routes to its global network in 2023 bringing the total network size to 206 routes from all operating hubs.

The capacity available across all hubs increased by 26 per cent during 2023 compared to the previous year.

The total operating fleet reached 73 Airbus A320 and A321 aircraft across all hubs, with one new aircraft added to the main hub in Sharjah in Q4.

Two leased Airbus A320 aircraft were added to the fleet in Q3, while four short-term leased Airbus A320 aircraft were added to the Morrocco hub during Q3 to support summer season operations.

Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia, said: “2023 has been a remarkable year for the airline. Air Arabia has successfully maintained its growth momentum from the previous record-breaking year and achieved exceptional financial and operational results. This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs

“The significant milestones attained in terms of growth, revenue, and profitability serve as a testament to Air Arabia’s robust business model, competent management team, and effective growth strategy.”