AIR Arabia, the region’s first and largest low-cost carrier, announced its financial results for the three months ending March 31, demonstrating continued profitability.
The airline’s net profit for the three months ending March 31 stood at Dh50 million ($13.6 million), a decline of 51 per cent compared to Dh103 million in the corresponding period in 2009. This decline in profitability was in line with global trends of the aviation industry.
In the first quarter of this year, Air Arabia posted a turnover of Dh482 million, an increase of four per cent compared to Dh463 million in the same period of 2009.
The airline served 1.03 million passengers in the first quarter of 2010, an increase of 9.2 per cent on last year and the average seat load factor – or passengers carried as a percentage of available seats – stood at an impressive 80 per cent.
“We are glad with the positive results Air Arabia posted in the first quarter of this year,” said Adel Ali, board member and group CEO. The lingering impact of the global financial crisis and the rise in fuel cost continues to affect the profitability of airlines worldwide as a result of continuous dilution in yields versus market over capacity. Nevertheless, Air Arabia posted appealing profits for this quarter and maintained its positive growth in passenger numbers.”
Air Arabia currently provides services to 60 destinations across Europe, the Middle East, Africa and Asia from its hubs in the UAE and Morocco.
The low-cost carrier will shortly introduce services across the Europe, Middle East and Africa region through Air Arabia Egypt, the carrier’s Alexandria-based joint venture company formed in cooperation with the Travco Group, the Middle East’s largest travel and hospitality group.