Air Arabia soars to record Q3 net profit of Dh564 million

Sharjah: DFM-listed budget carrier Air Arabia (PJSC) posted a net profit of Dh564 million for the third quarter ending September 30 this year. This represents an 8% increase compared to the Dh522 million the airline earned in net profits in 2023.

On Monday, the Sharjah-based airline announced its financial and operational results for the third quarter and first nine months of 2024.

Airline revenues soared to Dh1.78 billion during Q3 2024, compared to the Dh1.62 billion it posted in the third quarter of last year.

Furthermore, the airline achieved a turnover of Dh1.78 billion, marking a 10% increase compared to the third quarter of last year.

Moreover, from July to September this year, the airline said in a statement that over 5.1 million passengers travelled with Air Arabia Group across its operating hubs, reflecting an 8% increase from the 4.7 million passengers carried in the same quarter of the previous year.

The airline’s average seat load factor — representing the percentage of available seats occupied — increased by 2%, reaching 81% during Q3 2024.

Navigating risks

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said, “The aviation industry continued to face geopolitical and economic challenges in the third quarter, as airlines navigated airspace restrictions in parts of the region, leading to route adjustments and in some cases, flight suspensions.”

He added, “The industry continued to manage inflationary pressures prompted by the ongoing supply chain challenges, currency fluctuations, and fuel price volatility.”

Despite these factors, the airline successfully expanded its network, increased operating capacity, and maintained a strong operating margin, said Sheikh Thani.

“This achievement highlights the resilience of our business model and the strength of our management team,” he added.

First 9 months

That said, for the first nine months of this year, Air Arabia has posted net profits of Dh1.25 billion, reflecting a 5% decrease from the Dh 1.32 billion recorded in 2023. The airline achieved a turnover of Dh4.98 billion, marking a 12% increase compared to the Dh4.45 billion registered in the first nine months of last year.

Over 14 million passengers travelled with Air Arabia across its hubs during this period, representing a 13% growth compared to the number of passengers carried in the same period last year. The airline’s average seat load factor rose by 2%, reaching 82% for the first nine months of 2024.

The airline's liquidity remained strong during the first nine months of the year, with Dh4.9 billion in cash and cash equivalent.

Al Thani stated, “Throughout the first nine months of 2024, we maintained a strong commitment to growth across all areas of our business and operations. This included expanding our fleet, introducing new routes, and increasing flight frequencies across our operating hubs.” The company chairman said the airline remains committed to strategic growth, disciplined cost management, and delivering exceptional value to its customers for the rest of the year.

Fleet growth

During the first nine months of the year, Air Arabia added six new aircraft to its fleet, bringing its total to 77 owned and leased Airbus A320 and A321 aircraft.

The carrier also expanded its network by launching 22 new routes across its operating hubs in the UAE, Morocco, Egypt, and Pakistan.

Air Arabia has also integrated and deployed phase one of its enhanced fuel management system to further manage and optimise fuel efficiency across the group, which will eventually lead to further emissions reductions.