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Mon 10 Feb 2020 08:21 AM

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Air Arabia reports record profit on new routes, improved efficiencies

Air Arabia carried more than 12 million passengers in 2019

Air Arabia reports record profit on new routes, improved efficiencies

Air Arabia operates flights to over 170 destinations.

Sharjah-based low cost carrier Air Arabia’s 2019 net profit totalled AED 1 billion ($272.24m), an 80 percent increase over the net profit registered the previous year, the company announced on Sunday.

The statement, however, noted that 2018’s total excluded the impairment accounting treatment that Air Arabia took in 2018.

A statement Air Arabia credits expansion into new markets, improved operational efficiencies, lower fuel prices and less volatile currency movement for the improved performance.

For the year ending on December 31, 2019, the airline’s turnover reached AED 4.75 billion ($1.29bn), 15 percent higher than that recorded for the full year 2018.

In total served more than 12 million passengers from its four hubs in the UAE, Morocco and Egypt, an increase of 10 percent compared to the 11 million passengers carried in 2018.

The average seat load factor – the passengers carried as a total percentage of available seats – for the full year increased 2 percent to 83 percent.

“The year 2019 was a challenging year for the aviation industry worldwide,” said Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia. “The global economy endured a slowdown in key international markets while escalating geo-political pressures continued to impact the trading environment.”

In Q4, Air Arabia reported a net profit of AED 19 million, while the turnover for the quarter reached AED 1.14 billion. During the quarter, Air Arabia flew over 2.9 million passengers, an 8 percent increase from the same time period in 2018.

In 2019, Air Arabia received three new Airbus A321 neo LR airplanes, bringing its total fleet size to 55 aircraft and added 16 new routes across its hubs. The airline now flies to over 170 destinations.

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