Air Arabia’s first quarter profit drops 12.6%

Budget carrier Air Arabia, the United Arab Emirates’ only publicly listed airline, reported on Monday a 12.6 per cent fall in first-quarter net profit as growth in passenger numbers remained flat.

The Sharjah-based airline made a net profit of Dhs97.1m ($26.44m) attributable to the owners in January to March, according to the financial statement posted to the Dubai bourse on Monday. That was down from a profit of Dhs111.1m in the corresponding period of 2016.

On Sunday, the airline said in a statement net profit attributable to the company had dropped 10 per cent over the period. Sunday’s statement said the financial results were “recorded amidst the continuous drop” in passenger yield.

EFG Hermes and SICO Bahrain had forecast first-quarter profit of Dhs106.97m and Dhs47.97m respectively.

Air Arabia’s revenue fell 14.3 per cent in the first quarter to Dhs810m, according to the financial statement. The airline carried 2.1 million passengers, the same number as in the year-ago period.