Dubai: Sharjah-based budget carrier Air Arabia on Monday reported a 31.5 per cent decline in net profits reaching Dh309.55 million for the 12 months ending December 31, 2010, down from Dh452 million reported in the previous year.
Air Arabia, which now operates service to 67 destinations from three regional hubs, had a total turnover of Dh2.08 billion, an increase of 5.5 per cent compared to Dh2 billion reported in 2009.
Air Arabia served 4.45 million passengers in the 12 months ending December 31, 2010, an increase of 10 per cent compared 4.06 million passengers in 2009. The carrier's seat load factor - or passengers carried as a percentage of available seats - also increased in 2010, reaching 83 per cent, an increase of 3 per cent compared to 80 per cent reported for the full-year 2009.
"The year 2010 continued to witness pressure on yields and higher fuel prices, trends that have impacted the profitability of the sector worldwide. Never the less, Air Arabia 2010 results continued to demonstrate solid profitability, higher revenues and increased passenger numbers and seat load factor," said a company statement.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, described the carrier's positive financial results for 2010 as "extremely encouraging," adding that the he saw significant growth opportunities in 2011 based on Air Arabia's ongoing expansion strategy.
"Our ability to continue to report sustained profitability, as well as increasing revenues and passenger traffic, is testament to the strength of our management and underlying business model," he said. "By providing our customers with a growing range of destinations and value-for-money fares, Air Arabia has demonstrated its ability to thrive in even the most challenging conditions."
The year 2010 was a year of ongoing expansion for the low-cost carrier, which launched its Alexandria-based Air Arabia ‘Egypt,' in June. Last year, Air Arabia also introduced service to a range of new destinations from Sharjah, including Kabul, Afghanistan, and Sohag, Egypt.
Most recently, the carrier announced the expected delivery of a total of six aircraft this year after receiving its first of the 44 aircraft in October last year. By 2016, following the delivery of 44 A320 aircraft, Air Arabia's total operating fleet will exceed 50 aircraft, more than doubling the size of its current fleet.