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Air Arabia's billion dirham profit surge for 2019

Posted 12 February 2020 · Add Comment

Air Arabia is celebrating passing the billion dirham (£ 270m) net profit mark for 2019.

The Sharjah-based low cost carrier posted an 80% profit surge thanks to higher passenger numbers from its four hubs in the UAE, Morocco and Egypt.
Speaking at the HFW Middle East legal conference in Dubai last week, Air Arabia CEO Adel Ali told delegates that introduction of the A321 to the fleet enabled the carrier to meet growing demand and increase its average seat load factor.
Ali said there were growing numbers of business users taking advantage of the Air Arabia lower prices and improved frequencies. Utilisation of the Air Arabia aircraft are among the best in the world, he said.
At Sunday’s result presentation, Air Arabia chairman Sheikh Abdullah Bin Mohammad Al Thani, said full year turnover rose by 15 per cent to Dh4.75 billion and 16 new routes were added to the airline group network. The growth in passenger demand saw Air Arabia serve more than 12 million passengers from its four hubs in the UAE, Morocco and Egypt, up 10 per cent compared to the 11 million passengers carried last year.
The airline will soon be operating from a third hub in the UAE following a joint venture with Etihad which will see the LCC begin operations from Abu Dhabi.
Air Arabia benefited from lower fuel costs and in the fourth quarter of 2019 it reported a net profit of Dh199 million and carried 2.9 million passengers - an increase of 8 per cent compared to the same quarter last year.
The average seat load factor – or passengers carried as a percentage of available seats – for the full year increased 2 per cent at 83 per cent, the airline said.
“Going forward, we remain focused on driving operational efficiency across board, exploring opportunities and ventures that will best serve the airline’s ambitious growth plans while delivering optimum value to our customers and shareholders,” Al Thani said.

Air Arabia CEO Adel Ali speaking at last week's HFW Middle East Legal conference in Dubai

 

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