Dubai: New routes and increases in capacity helped Air Arabia grow its net profit to Dh261 million in the first half of this year, a 7 per cent rise compared to the same period last year.
The Sharjah-based low cost carrier said on Monday it served over 4.1 million passengers in the first six months of 2017, while the average seat load factor – or passengers carried as a percentage of available seats – for the same period stood at 79 per cent.
Turnover for the Middle East and North Africa’s largest low-cost carrier reached Dh1.716 billion, it said in a statement.
“The first half of this year has seen Air Arabia continue its robust growth by launching new routes and increasing capacity across its operating hubs while remaining focused on driving operating cost margins lower by the day,” stated Shaikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia.
The airline received two new Airbus A320 aircraft in the first half of this year, and added 12 new routes from its major operating hubs in the UAE, Morocco, Egypt and Jordan. Air Arabia currently serves a global destination network of 130 routes across the world.
The airline launched three times a week flights to Sohar and five times a week to Trabzon, Turkey, last month.
In the second quarter, meanwhile, the airline reported a 21 per cent increase in second-quarter profit to Dh158 million compared to Dh131 million a year ago while its turnover increased to Dh906 million, compared to Dh894 million a year earlier.
It said it reported a 10 per cent drop in first-quarter profit due to a drop in yield margins across the industry over the first three months of the year.
“Air Arabia’s strong second quarter financial performance is a testament to the carrier’s operational efficiency and robust growth strategy. Despite the continuous pressure on yield margins, which is driven by the market and the economic environment, we managed to register a solid net profit backed by the carrier’s cost control measures, operational efficiency and combined with its momentum growth,” said Shaikh Abdullah.
Air Arabia served over 2.05 million passengers in the second quarter, while the average seat load factor – or passengers carried as a percentage of available seats – for the same quarter stood at an impressive 79 per cent.
“We are confident about the appeal of low-cost travel in general and Air Arabia services in particular across the markets we operate in. As we continue to further expand our reach and network, we remain focused on operational efficiency, cost control as well as delivering even more value for money air travel to our customers,” he added.
Air Arabia’s shared closed 1.82 per cent lower at Dh1.08 on Dubai Financial Market on Monday.
