FINANCIAL results from Air Arabia for 2007 revealed that the Middle East and North Africa’s first low cost carrier achieved a net profit of Dh376 million.
This was for the financial year ending December 31, 2007 and against a net profit of Dh101 million in 2006 it shows an increase of 272 per cent.
The carrier posted a turnover of Dh1.283 billion in 2007, up 71.3 per cent compared to Dh749.16 million in 2006. The passenger average load factor stood at 86 per cent.
Overall, a total of 2.7 million passengers flew with Air Arabia in 2007, an increase of 53.2 per cent compared to 1.76 million passengers in 2006.
For the fourth quarter of 2007, Air Arabia posted a net profit of Dh89.52 million, up 174 per cent compared to Dh32.65 million during the fourth quarter of last year. The carrier posted a turnover of Dh349.3 million, up 62.3 per cent compared to Dh215.2 million in same period of 2006.
During the fourth quarter of 2007, the airline served 745,000 passengers, an increase of 49.8 per cent compared to 497,000 passengers during the same period in 2006.
Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, said, “The year 2007 saw Air Arabia achieve unprecedented success in the low-cost carrier segment, a market we introduced to the Middle East just four years ago. From our successful initial public offering, to orders for aircraft acquisition, to the launch of new destinations and new hubs across the region, 2007 was truly a landmark year for the Air Arabia.”
He added, “The year 2008 will see us continue our journey of expansion and market leadership. Our expansion throughout the wider region will enable more consumers than ever to have access to the highest quality of service at the most competitive fares, providing them with the ability to make air travel a larger part of their lives than ever before.”
The carrier’s initial public offering opened in March and achieved great success. Air Arabia was able to use the proceeds from the offering in part to fund its record purchase of Airbus A320 aircraft, aiming to triple the size of Air Arabia’s fleet and underlining the company’s stated ambition to increase its total operating fleet to over 50 aircraft by 2015.
In addition to dramatically increasing the size of its fleet, the carrier also extended its destination network to 37 different cities throughout the Middle East, North Africa, South Asia, Central Asia and Eastern Europe.
The company recently announced the start of operations from its newest hub in Kathmandu, Nepal, as well as its intention to open a new hub in 2008.