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Thu 9 Aug 2018 06:41 PM

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UAE's Air Arabia sees 12% slide in half-year net profit

Sharjah-based carrier Air Arabia says it has flown 4.2 million passengers during the first six months of 2018

UAE's Air Arabia sees 12% slide in half-year net profit

Air Arabia on Thursday announced a net profit of AED230 million for the first half of 2018, down 12 percent on the same period last year.

The airline’s turnover for the first six months of the year reached AED1.8 billion, an increase of 6 percent.

Air Arabia said it made strong profits despite the economic pressure that airlines have witnessed in the second quarter of this year, which was driven by lower yield margins, higher fuel prices and seasonality shift in traffic that the market has experienced.

The carrier added in a statement that it flew 4.2 million passengers during the first half of 2018 with an average seat load factor of 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 robust growth strategy, operational efficiency and unwavering commitment to delivering on its value-added proposition for customers.”

He added: “The global aviation industry had to cope up with pressing economic challenges during the second quarter of this year and we are glad to see Air Arabia continuing to deliver strong financial and operational performance while maintaining its momentum growth across the breadth of its network.”

Net profit during the second quarter of 2018 stood at AED120 million, 24 percent lower than the corresponding period of 2017, the statement said.

Al Thani added: “Trading conditions continue to be influenced by the regional geopolitical and economic challenges, however, the outlook of low-cost travel in the region remains very strong. We continue to focus on further expanding our reach and operational efficiency capitalizing on the fundamental strength of our business model and the value driven product offering to our customers”.

During the first half of 2018, Air Arabia received three new Airbus A320 airplanes bringing its fleet size to 53 aircraft. The carrier also added a total of 12 new routes to its global network in the first half of this year.

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