Air Arabia first quarter 2012 net profit rises 11% to Dh49.2 million

Air Arabia first quarter 2012 net profit rises 11% to Dh49.2 million

Sharjah Air Arabia (PJSC), reported an 11 per cent increase in its net profits to Dh49.2 million for the three months ending March 31, up from Dh44.2 million in the corresponding period in 2011.

The Sharjah-based budget airline posted a turnover of Dh621 million, an increase of 21 per cent compared to Dh513 million in the same period of 2011.

The airline served 1,230,807 passengers in the first quarter of 2012, an increase of 7 per cent compared to 1,153,807 passengers in the same period last year.

"The positive results achieved in the first quarter of 2012 reflect the airline's strong operating performance, leading market share and solid profitability path," the company said in a statement.

In the three months ending March 31, 2012, Air Arabia's average seat load factor - or passengers carried as a percentage of available seats - stood at 82 per cent.

"Shortly after the distribution of a six per cent cash dividend was approved by the Assembly at Air Arabia's Annual General Meeting, we are pleased to announce our positive results for the first quarter of this year, demonstrating Air Arabia's strong business model and excellent market appeal," said Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia.

"Though political instability and sustained high fuel costs continue to challenge regional carriers, the appeal of air transport, and especially the low-cost model pioneered by Air Arabia in the region, remains strong. As these results make clear, Air Arabia remains on a path of steady upward growth."

"Air Arabia will continue to enter into new markets and to launch new ventures in 2012, supporting the airline's robust commercial and operational performance, while providing our customers with an even wider choice of affordable air travel options."

The first quarter of this year saw Air Arabia flights to Kuwait and Dammam increase to three times daily. As well, Air Arabia's total operating fleet reached 30 aircraft, while the carrier took delivery of the ninth of 44 A320 aircraft it has ordered from Airbus. The airline will receive five more A320 aircraft this year, which is in line with Air Arabia's growth plan to further expand its destination network and significantly grow the size of its fleet by 2016.