Dubai: Budget carrier Air Arabia on Sunday reported Dh662 million in net profit for 2017, marking a 30 per cent jump year-on-year as the airline grew its network and cut costs.
The figure puts profit in the fourth quarter of the year alone at Dh26 million, a turnaround from the Dh33 million in losses in the last quarter of 2016.
Turnover for the year was in line with that of 2016, at Dh3.74 billion, Air Arabia said in a statement, with turnover in the fourth quarter of the year at Dh858 million, up 5.4 per cent year-on-year.
Operationally, the Sharjah-based airline flew over 8.5 million passengers in 2017, with a seat load factor of 79 per cent.
Air Arabia’s board of directors proposed a dividend distribution of 10 per cent of share capital, equivalent to 10 fils per share.
Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, said that while political and economic challenges continued to impact the performance of the aviation industry in 2017, Air Arabia focused on operational efficiency and product offering.
“We are extremely confident about the long-term fundamentals of the aviation sector in the region, which is driven by the underlying demand for air travel, major investments undertaken in aviation infrastructure in the region, as well as the region’s hub position on the global map,” Al Thani said.
The chairman added that Air Arabia will continue to explore new opportunities and enter into new ventures to serve its growth plans. He did not elaborate on whether the airline was considering any new deals.