Dubai: Air Arabia, the United Arab Emirates’ only listed airline, reported on Wednesday a 12 per cent in second quarter drop in net profits with the airline feeling the weight of a weakened Russian economy.
The airline made Dh151.5 million in the three months to June 30, 2015 compared to Dh172.7 million a year ago, according to an emailed statement. Revenue for the same period slid to Dh860 million, down 6 per cent from Dh915 million.
“The economic performance from Russia and CIS countries and the impact of oil prices on the global economy in addition to regional political instability have all served to put pressure on yield margins,” stated Air Arabia Chairman Sheikh Abdullah Bin Mohammad Al Thani.
For the first half of the year, the Dubai bourse-listed airline made Dh236.9 million, 4 per cent less than the Dh247.6 it made a year ago for the same period. Revenue for the first six months of the year was flat at Dh1.74 billion.
Al Thani said the airline is “confident” the factors that had dragged on growth “will be mitigated in the coming quarters.”
Air Arabia carried 1.8 million passengers in the second quarter, up 4 per cent, and a total of 3.6 million passengers in the first half up of the year, up 9 per cent.
