Air Arabia’s Q2 profit tanks by 7%, despite robust passenger demand
The budget carrier’s profit for the three months to June 30 dropped to Dhs427m, compared to Dhs459m for the same period a year ago
Sharjah-based Air Arabia reported a 7 per cent decrease in first-quarter profit on Monday, despite robust passenger demand and ongoing business growth.
“Despite the robust passenger demand, the aviation industry continued to experience slower yield growth and rising costs during the second quarter of this year, driven by economic and geopolitical uncertainties, currency fluctuations, fuel price volatility, and supply chain disruptions that have led to increased inflationary pressures,” said Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia.
The budget carrier’s profit for the three months to June 30 dropped to Dhs427m, compared to Dhs459m for the same period a year earlier.
However, the company’s turnover for the same period jumped 19 per cent to Dhs1.65bn from Dhs1.39bn for the corresponding period a year ago, as the demand for air travel continues to increase.
📈 We are pleased to report AED 693 million net profit in the first half of 2024 with 13% increase in revenue to AED 3.19 billion and 16% increase in passenger carried to 8.9 million.
Read more https://t.co/IRA4U3v1ea pic.twitter.com/W1qw8oK8zS— Air Arabia (@airarabiagroup) August 12, 2024
Air Arabia carried more than 4.5 million passengers across its operating hubs in the April-June period, a 13 per cent increase compared to the 3.8 million customers it served in Q2 2023. Its average seat load factor rose by 3 per cent to 79 per cent in Q2 2024.
The airline took delivery of three new aircraft in the first half of the year, bringing its total fleet of owned and leased Airbus A320 and A321 aircraft to 77. During the period under review, it added 16 new routes to its global network from its operating hubs in the UAE, Morocco, Egypt, and Pakistan.
“Throughout the first half of 2024, Air Arabia remained steadfast in executing its expansion plan by expanding fleet size, launching new routes, and increasing flight frequencies across all operating hubs,” added Al Thani.
The airline liquidity for the first half of 2024 stood at Dhs4.8bn in cash and cash equivalent.
