Subscribe Free
in Business & Finance

Air Arabia posts record second quarter net profit of AED 210 million

Posted 13 August 2019 · Add Comment

Air Arabia has recorded strong financial and operational results for the second quarter of this year ending June 30, 2019 as the Middle East and North Africaís first and largest low-cost carrier continued to deliver robust and sustained performance.

 

Air Arabia registered a record net profit of AED 210 million for the three months ending June 30, 2019, an increase of 75 per cent compared to the AED 120 million reported for the same period last year. The company’s turnover for the second quarter of 2019 increased by 22 per cent to AED 1.144 billion, compared to AED 938 million in the corresponding period last year.

The strong second quarter financial results were backed by solid growth in passenger demand with Air Arabia serving over 3 million passengers from its four hubs in the UAE, Morocco and Egypt, an increase of 16 per cent compared to 2.59 million passengers carried in the same quarter last year. The average seat load factor – or passengers carried as a percentage of available seats – for the same quarter stood at an impressive 84 per cent.

Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia said: “We are glad the strong Air Arabia performance witnessed in the first quarter of this year continued in the second quarter driven by our cost control measures, improved yield margins and strong passenger demand”.

Equally, Air Arabia reported strong set of results for the first half ending June 30, 2019 registering a net profit of AED 338 million; a 47 per cent increase compared to AED 230 million reported for the same period last year. The company’s turnover for the first six months of 2019 reached AED 2.173 billion, an increase of 20 per cent compared to AED 1.816 billion in the corresponding period last year. Air Arabia served over 5.82 million passengers from all its four hubs in the first half of 2019, an increase of 12 per cent compared to first half of 2018. The average seat load factor – or passengers carried as a percentage of available seats – for the same period stood at an impressive 84 per cent. 

Al Thani continued: “Air Arabia’s record second quarter and first half 2019 performance reflects the strength of the business model we operate as well as the appealing demand for the value driven services that Air Arabia offers”. 

“The global and regional aviation industry continued to be impacted by pressing economic challenges and escalating geo-political tensions during the first half of this year; and despite of that, Air Arabia managed to register record performance supported by strong passenger demand, momentum growth and operational efficiency” he added. 

During the first half of 2019, Air Arabia received its first brand new Airbus A321 neo LR airplane bringing its total fleet size to 54 aircraft. The new Airbus A321, which accommodates 215 passengers, is the first of five aircraft to be delivered in 2019 that will help the carrier expand to new medium-haul markets in addition to strengthening the existing routes with increased seat capacity.

The carrier added a total of 10 new routes to its global network in the first half of this year. Flights from Air Arabia’s hub in Morocco commenced from Casablanca to Lisbon, Pisa, Prague and Tunis while new flights started between Tangier and Lyon; Fez and Rome. The carrier also expanded its operation from its Egypt hub with new flights connecting Sharm El Sheikh to Milan Bergamo, Amman and Luxor; as well as Sohag to Riyadh. Air Arabia also announced the launch of four new destinations from its main hub in Sharjah to Kuala Lumpur, Tunis, Vienna and Bishkek with flights commencing in third quarter of this year

Al Thani concluded: “Growth prospects for the MENA region remain strong for the aviation industry and especially for the low-cost travel segment. We look forward to the remaining of the year as we continue to focus on expanding our geographic reach, driving cost control measures and investing further in value-driven product offering to our customers.”

* required field

Post a comment

Other Stories
Advertisement
Latest News

DFS completes cargo conversion of Falcon 900B to help deliver masks to North Africa

Dassault Falcon Service (DFS) has completed the conversion of a Falcon 900B from passenger configuration to full cargo in record time.

Middle Eastern carriers see air cargo capacity decline in April

The International Air Transport Association (IATA) released data for global air freight markets in April showing that demand dropped 27.7% compared to the same period in 2019 - the sharpest fall ever recorded.

AFRAA: North African airlines see impact of COVID-19

AFRAA has released an impact assessment analysis showing a 90.3% year on year passenger traffic reduction for the month of May; recovery is expected to start from Q3 2020 with domestic flights, followed by regional and intercontinental

High-speed Wi-Fi to business jet passengers in Turkey

Honeywell and MNG Jet have installed Honeywellís JetWave satellite communications hardware on an MNG Jet Bombardier Challenger 605 to Turkey.

Muhiddin's taste for the big AMAC

Swiss-based AMAC Aerospace is bolstering its presence in the MENA region. Vincent Chappard talked to group executive chairman and CEO, Kadri Muhiddin, to find out more.

No stop to missile activity across Saudi borders

While Covid 19 might have stopped flights it did not put any halt on the conflict between Saudi Arabia-led coalition forces and the Yemeni Houthi.

AVMENA20 SK14191020
See us at
SaudiAirshow21BT2011180221MAPS2020 BT1102171120AVMENA20 BT1309100620