By Staff writer
Low cost airline says second quarter net profit slips by 14% due to impact of Ramadan, overcapacity
Air Arabia on Thursday reported a net profit of AED245 million ($66.7 million) for the first half of 2016, an increase of 3.5 percent compared to the same period last year.
The company’s turnover for the first six months reached AED1.84 billion, up by 5.5 percent, a statement said.
Air Arabia said it flew 4.1 million passengers during the first half of 2016 – up 14 percent on the corresponding period last year. The airline’s average seat load factor - passengers carried as a percentage of available seats – stood at impressive 79 percent.
Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia said: “Despite the continuous pressure on yield margins that airlines are witnessing and the challenges associated with the regional economic outlook, Air Arabia continues to deliver solid financial performance and momentum growth.
“We remain optimistic about the outlook of low-cost travel in the wider region as we continue to focus on further expanding our network and operational efficiency as well as leveraging on emerging travel trends by delivering even more value to our customers”.
Air Arabia flew over 2 million passengers in the second quarter ending June 30, an increase of 12 percent compared to Q2 2015.
The company’s turnover in the second quarter reached AED894 million, an increase of 4 percent, while net profit fell 14 percent to AED131 million.
The airline said the dip in Q2 profit was driven by a regional shift in traffic due to the month of Ramadan and the excess in capacity available in the market which is affecting airlines’ yield margins.
Air Arabia today operates flights to over 120 destinations in 33 countries from five hubs in the UAE, Morocco, Egypt and Jordan.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
No wonder their profit is higher. Their airfare is no less than the normal airline and on some sectors they are looting the passengers. I am Coimbatore since they are the only one gulf airline to fly there the fare is always high in this sector even if I want to book the flight some 6 months before.
Humble request for the Airarabia management please re look into the fare