Airline said results exceeded analysts' expectations
Air Arabia, the UAE-based budget carrier, reported a 27% increase in Q3 net profit, based on cost savings and new routes added.
The Sharjah-based airline announced third-quarter net profit of $102 million (AED376m), compared to $81m (AED 297m) reported for the same period last year.
Revenue increased by 4 percent to $316m (AED1.16bn), up from $305m (AED1.12bn) in Q3 2016.
In terms of passenger numbers, Air Arabia saw over 2.33 million use its airline during the three months, up 3 percent on last year, while average seat load factor (passengers carried as a percentage of available seats) for the same quarter was 81 percent.
Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia said: “The solid third quarter results reflect the continuous appeal for our value driven product combined with the cost control measures and robust growth strategy adopted by the airline management team. We are glad to see Air Arabia delivering strong financial and operational performance throughout 2017 despite the continuous pressure on yield margins that airlines in the region are witnessing.”
Air Arabia received three new Airbus A320 aircraft in the first nine months of 2017, bringing its fleet size to 48, and added 14 new routes from its five operating hubs in the UAE, Morocco, Egypt and Jordan. The carrier currently serves a global destination network of 133 routes across the world.
“Air Arabia continued its robust growth in the first nine months of this year and while we maintain our expansion and reach across all markets, we remain focused on providing customers with the world’s best value driven air travel while focusing on operational efficiency and cost control,” Al Thani added.