Air Arabia delivers record 2023 net profit of AED1.5 billion, up 27%

SHARJAH / WAM

Air Arabia (PJSC), the region’s leading low-cost carrier (LCC), soared to new heights in 2023, earning a record-breaking net profit of AED1.5 billion, marking a significant 27% increase compared to the previous year’s AED 1.2 billion. The company in its financial results for the full year ending on December 31, 2023, stated that the airline’s turnover for the same period reached AED 6 billion, reflecting a 14 percent increase compared to the AED 5.2 billion registered in 2022. Air Arabia’s Board of Directors
proposed a dividend distribution of 20 percent of share capital, which is equivalent to 20 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming Annual General Meeting. 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. 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.”
He continued, “Despite the numerous geopolitical and economic challenges faced by the global aviation industry, the Air Arabia group managed to sustain its strong growth in 2023. This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs. We take pride in the fact that Air Arabia’s value-driven product and services now cater to a broader customer base and reach more markets.”
In 2023, Air Arabia demonstrated its commitment to robust growth by expanding operations across its seven operational hubs and introducing 26 new routes within its global network. This strategic expansion resulted in an increase in operational capacity, which was further complemented by an impressive 31 percent surge in the number of passengers carried across the group, reaching a remarkable 16.7 million passengers. In the fourth quarter ending on December 31 2023; Air Arabia reported a net profit of AED 225 million, 37 percent less than the AED 356 million recorded in the same quarter last year, which
had witnessed record high yield margins. The turnover for the last quarter of 2023 increased by 11 percent to reach AED 1.54 billion and the seat factor for the quarter remained strong at 81 percent. Al Thani continued, “Despite the softening in yield margins during the last quarter of the year and the ongoing challenges in the industry’s supply chain, Air Arabia demonstrated resilience by registering a solid profitability while maintaining an impressive seat load factor and growth in revenue and passenger numbers. This outstanding performance serves as a testament to Air Arabia’s effective operational and commercial strategy, as well as its unwavering commitment to consistently delivering genuine value to its customers.”