Air Arabia reports Q3 net profit rise of 8% to Dhs564m

Image: Air Arabia

Sharjah-based Air Arabia announced record-breaking financial and operational results for Q3 and the first nine months of 2024, despite facing ongoing challenges in the aviation sector.

For the third quarter ending September 30, Air Arabia posted a net profit of Dhs564m ($153m), marking an 8 per cent increase from Dhs522m during the same period in 2023.

The airline also achieved a turnover of Dhs1.78bn, up by 10 per cent compared to last year.

The airline carried over 5.1 million passengers across its various hubs in the third quarter, an 8 per cent increase from the 4.7 million passengers flown during the same period last year.

The average seat load factor — a key indicator of efficiency — rose by 2 per cent, reaching 81 per cent during the quarter, demonstrating sustained strong demand for Air Arabia’s low-cost services.

Resilience amid industry challenges

Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, attributed the airline’s success to its resilient business model. “Air Arabia’s record net profit, coupled with growth in revenue and passenger demand, is a testament to the strength of our operations and the true value we offer to our customers,” he said.

Despite the ongoing geopolitical tensions, airspace restrictions in parts of the region, and continued economic pressures such as inflation, supply chain disruptions, and fuel price volatility, Air Arabia’s performance underscores the airline’s ability to adapt and thrive. The airline expanded its network, increased operating capacity, and maintained strong operational margins.

“While challenges remain, including route adjustments and the management of external pressures, Air Arabia has continued to innovate, expand, and deliver exceptional value,” added Al Thani.

Growth path for the year

From January to September, Air Arabia reported a net profit of Dhs1.25bn, a slight decrease of 5 per cent compared to  Dhs1.32bn in the same period in 2023.

However, the airline saw a 12 per cent rise in revenue, reaching Dhs4.98bn from Dhs4.45bn last year.

During this period, Air Arabia flew over  14 million passengers, reflecting a 13 per cent increase from 12.4 million passengers in the same period in 2023. The average seat load factor for the year so far rose by 2 per cent, reaching 82 per cent.

As of September 2024, the airline held Dhs4.9bn in cash and cash equivalents, providing a strong liquidity position to support future growth initiatives.

Air Arabia fleet expansion and network growth

In line with its growth strategy, Air Arabia expanded its fleet in the first nine months of 2024 by adding six new aircraft, bringing its total fleet to 77 Airbus A320 and A321 aircraft. The airline also launched 22 new routes across its hubs in the UAE, Morocco, Egypt, and Pakistan, further strengthening its network and geographic reach.

Commitment to sustainability

The airline implemented phase one of its enhanced fuel management system, optimising fuel efficiency across its fleet to reduce carbon emissions. Air Arabia has also adopted a circular economy approach to inflight services, ensuring all packaging used in its operations is either biodegradable or recyclable.

Looking forward, Sheikh Abdullah Bin Mohammad Al Thani expressed confidence in Air Arabia’s ability to maintain its growth trajectory. “As we look to the remainder of the year, we remain focused on strategic growth, disciplined cost management, and delivering exceptional value to our customers,” he said.