Air Arabia’s quarterly profit soars 187% to Dhs459m

Sharjah-based Air Arabia has reported a 187 per cent increase in second-quarter net profit to Dhs459m from Dhs160m during the corresponding period a year earlier. The second quarter net profit also included an exceptional one-off receivable that the airline received from one of its suppliers.

The company’s turnover for the same period jumped by 25 per cent to reach Dhs1.39bn from Dhs1.11bn in the corresponding period last year, as the demand for air travel continues to increase.

The budget carrier flew more than 3.8 million passengers between April and June 2023 across the carrier’s seven hubs, an increase of 37 per cent compared to the same quarter last year. Air Arabia’s average seat load factor during the second quarter of 2023 stood at an average of 76 per cent.

Air Arabia’s half-year earnings

Air Arabia’s half-year net profit jumped 78 per cent to Dhs801m, from Dhs451m registered in the corresponding first half of 2022.

The airline reported a turnover of Dhs2.82bn, a 26 per cent increase from Dhs2.24bn registered in the corresponding first half of last year. More than 7.7 million passengers flew with Air Arabia between January and June 2023 across the carrier’s seven hubs, an increase of 47 per cent compared to the same period last year.

The airline’s average seat load factor – or passengers carried as a percentage of available seats –stood at an average of 81 per cent.

Air Arabia reports record second quarter net profit of AED 459 million, up 187% compared to same quarter last year and a 25% increase in turnover achieving AED 1.39 billion while carrying more than 3.8 million passengers across its seven hubs. Read more https://t.co/vNKKx6sHsb pic.twitter.com/lGLuX3LX4u

— Air Arabia (@airarabiagroup) August 11, 2023

“Air Arabia’s strong performance in the second quarter of this year is a testament to the resilience and effectiveness of the business model we operate. Our steady performance in the first quarter continued to the second quarter underlining the consistency of our growth strategy and operational excellence,” said Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia.

“Our organic approach of network expansion not only strengthened our connectivity but has also unlocked new opportunities for our passengers.”

Al Thani said despite changing macroeconomic and geopolitical tension in some markets, the budget carrier remains focused on driving profitability and maintaining efficiency across the breadth of its operations.

The carrier’s growth strategy

During the first half of the year, Air Arabia added three new aircraft to its fleet bringing it to a total of 71 owned and leased Airbus A320 and A321 aircraft.

The budget carrier expanded its network in the six months to June 30 by launching 18 new routes across its seven operating hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan.

Furthermore, the company’s corporate social responsibility (CSR) programme, “Charity Cloud,” has continued to make a positive impact by launching new projects serving underprivileged communities in countries across its network. Through various initiatives and partnerships, the airline remains committed to giving back to society and making a difference in the local communities it serves.

Read: Air Arabia reveals plans to double current fleet within 12 months