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Wed 7 Aug 2019 05:48 PM

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UAE's Air Arabia soars to record $57m net profit in Q2

Sharjah-based low cost carrier reports 22% increase in second quarter turnover, carries over 3m passengers

UAE's Air Arabia soars to record $57m net profit in Q2

Sharjah-based Air Arabia on Wednesday announced a record net profit of AED210 million ($57.1 million) for the three months ending June 30, an increase of 75 percent compared to the same period last year.

The company’s turnover for the second quarter of 2019 increased by 22 percent to AED1.144 billion, the low cost carrier said in a statement.

It added that the strong second quarter financial results were backed by solid growth in passenger demand with Air Arabia serving over 3 million passengers from its four hubs in the UAE, Morocco and Egypt, an increase of 16 percent.

The average seat load factor – or passengers carried as a percentage of available seats – for the same quarter stood at 84 percent.

Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia said: “We are glad the strong Air Arabia performance witnessed in the first quarter of this year continued in the second quarter driven by our cost control measures, improved yield margins and strong passenger demand."

Air Arabia also reported a net profit of AED338 million in the first half of 2019, a 47 percent increase, while turnover reached AED2.173 billion, an increase of 20 percent.

Air Arabia served over 5.82 million passengers in the first half of 2019, up 12 percent.

Al Thani added: “Air Arabia’s record second quarter and first half 2019 performance reflects the strength of the business model we operate as well as the appealing demand for the value driven services that Air Arabia offers.

“The global and regional aviation industry continued to be impacted by pressing economic challenges and escalating geo-political tensions during the first half of this year; and despite of that, Air Arabia managed to register record performance supported by strong passenger demand, momentum growth and operational efficiency.”

The carrier said it added a total of 10 new routes to its global network in the first half of this year.

Al Thani said: “Growth prospects for the MENA region remain strong for the aviation industry and especially for the low-cost travel segment. We look forward to the remaining of the year as we continue to focus on expanding our geographic reach, driving cost control measures and investing further in value-driven product offering to our customers.”

Air Arabia operates flights to over 170 global destinations in 50 countries.

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