Air Arabia predicts revenues of $408mn in '08

FLEET EXPANSION: Air Arabia expects to carry as many as four million passengers this year as it expands its fleets, adds destinations and boosts flights. (Getty Images)

Air Arabia, the Middle East's largest low-cost airline, said it expects to carry as many as four million passengers this year as it expands its fleets, adds destinations and boosts flights.

The Sharjah, UAE-based carrier could carry between 3.6 and four million passengers this year compared with 2.7 million last year, and boost revenues to 1.5 billion dirhams ($408.4 million), Chief Executive Adel Ali told newswire Reuters.

Revenues last year rose to 1.28 billion dirhams.

"There will be more aircraft," Ali said on the sidelines of the World Economic Forum (WEF) in Egypt. "We'll be adding destinations and looking to boost frequencies."

The airline had 10 aircraft at the end of December and expects to have 17 by the end of this year, compared with 16 at the moment, he said.

Ali said he is looking to increase his load factor, the percentage of seats occupied on any flights, by half a percentage point to 86.5%.

Air Arabia plans to increase flights to the Iranian capital Tehran to daily by the end of August compared with three times a week now, and to start flying to the Iranian city of Shiraz, Ali said.

The Dubai-listed company expects to add the Uzbek capital Tashkent and the Ukrainian city of Kiev as destinations, and complete an agreement with Morocco by the end of the year to use the north Afrian state as a hub for flights into Europe - including France, Britain and Spain - and into Africa, Ali said.

Shares in Air Arabia were up 0.5% at 1.98 dirhams by 0835 GMT. The stock has gained more than 11% this year, outperforming the market, which is down almost 5%. (Reuters)

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