Air Arabia records net profit of AED245 million

Sharjah / WAM

Air Arabia (PJSC) on Thursday announced strong financial results for the first half of 2016 ending June 30, 2016, reporting a net profit of AED245 million for the first half of 2016 ending June 30, 2016, an increase of 3.5 percent compared to the AED237 million reported for the same period last year.
The Middle East and North Africa’s first and largest low-cost carrier continued to deliver a robust, sustained performance.
The company’s turnover for the first six months of 2016 reached AED1.84 billion, compared to AED1.75 billion in the corresponding period last year, an increase of 5.5 percent.
Marking robust growth in passenger demand, Air Arabia flew 4.1 million passengers during the first half of 2016 – up 14 percent on the corresponding period last year. The airline’s average seat load factor for the first six months of 2016 – passengers carried as a percentage of available seats – stood at impressive 79 percent.
Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia said, “Air Arabia’s strong financial results are a testament to the airline’s unwavering commitment to delivering on its value-added proposition for customers combined with its operational efficiency and the effectiveness of its wider growth strategy. Despite the continuous pressure on yield margins that airlines are witnessing and the challenges associated with the regional economic outlook, Air Arabia continues to deliver solid financial performance and momentum growth.”
He added, “We remain optimistic about the outlook of low-cost travel in the wider region as we continue to focus on further expanding our network and operational efficiency as well as leveraging on emerging travel trends by delivering even more value to our customers”.
Air Arabia flew over 2 million passengers in the second quarter ending June 30, 2016, increased by 12 percent compared to the same period of 2015. The airline’s average seat load factor for the same period stood at a high 78 percent.
The company’s turnover in the second quarter ending June 30, 2016, reached AED 894 million, an increase of 4 percent compared to the same period of 2015. Net profit during the second quarter 2016 stood at AED131 million, 14 percent less than the corresponding period of 2015, this is driven by regional shift in traffic in the second quarter of 2016 due to the month of Ramadan and the excess in capacity available in the market which is affecting airlines’ yield margins.
In April, Air Arabia was named ‘Best Low-cost Airline serving the Middle East’ at the prestigious Business Traveller Middle East Awards 2016, in recognition of its outstanding performance in meeting the needs of executive travellers.
During the first half of 2016, Air Arabia received three new airplanes and added new flights to Sarajevo in Bosnia and Herzegovina from its main hub at Sharjah. In the same period, Air Arabia Jordan expanded its operations by launching a new route from Amman to Riyadh, while Air Arabia Maroc launched two new routes connecting Marrakech to Pau and Fez to Toulouse.
Air Arabia today operates flights to over 120 global destinations in 33 countries from five hubs in the UAE, Morocco, Egypt and Jordan.