Air Arabia reports Dh1.54 billion in first quarter 2024 revenues
Airline shareholders approve 20% dividend distribution for 2023
Sharjah: DFM-listed low-cost carrier Air Arabia posted a revenue growth of Dh1.54 billion, an 8 per cent increase compared to the first quarter of last year, the airline said in a statement on Monday.
Air Arabia reported a net profit of Dh266 million for the first three months ending March 31, 22 per cent lower than the Dh342 million registered in the corresponding quarter in 2023.
Moreover, more than 4.4 million passengers flew with Air Arabia Group between January and March 2024 across the carrier’s operating hubs, an increase of 13 per cent compared to a total of 3.9 million passengers carried in the first quarter of last year.
The airline said its results were impacted by the seasonality shift during Ramadan, higher fuel prices, currency fluctuations in key markets, and ongoing supply chain challenges that contributed to higher inflationary costs across the industry.
The airline’s average seat load factor—or passengers carried as a percentage of available seats—during the first three months of 2024 stood at 85 per cent.
Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said, “Air Arabia’s strong financial results achieved in the first three months of this year reflect our unwavering dedication to operational excellence and our commitment to continuously delivering value-driven products to our customers”.
He added, “Despite the ongoing economic and geopolitical uncertainty, seasonality’s impact on our business, fuel price volatility, currency fluctuation, and supply chain challenges, our focus on driving profitability and maintaining an efficient operation has enabled us to deliver solid financial and operational results.”
Al Thani said, “We are confident in our ability to navigate market challenges and capitalize on new opportunities while ensuring we continue to deliver the best value for our customers and shareholders.”
The first quarter net profit achieved was driven by passenger demand and revenue growth.
Committed to growth
Al Thani added, “As we navigate the current geopolitical challenges and the prolonged supply chain disruptions that the global aviation industry continues to face, we remain steadfast in our growth plans for 2024, building upon the strength of the business model we operate.”
He added, “We are confident about the prospects of the low-cost travel industry while we continue exploring new opportunities that will allow us to expand the reach of our value-driven product to a broader customer base”.
Air Arabia added two new routes to its global network from its operating hubs in the UAE, Morocco, Egypt, and Pakistan during the first three months of 2024, serving passengers with its modern fleet of 74 new Airbus A320 and A321 aircraft.
Air Arabia shareholders approved a 20 per cent dividend distribution in March at the carrier’s 2023 Annual General Meeting. The airline’s liquidity for the first quarter of 2024 stood at Dh5 billion in cash and cash equivalent.