AIR ARABIA, the Middle East and North Africa’s first and largest low cost carrier (LCC), revealed a net profit of Dh510 million for the financial year ending December 31, 2008, compared to a net profit of Dh376 million in 2007, an increase of 35.6 per cent.
The carrier posted a turnover of Dh2.066 billion in 2008, up 61 per cent compared to Dh1.283 billion in 2007.
Passenger average load factor – passengers carried as a proportion of available seats – stood at 85 per cent.
Overall, a total of 3.6 million passengers chose to fly with Air Arabia in 2008. This is an increase of 33 per cent compared to 2.7 million passengers in 2007.
Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia said, “2008 was a landmark year for Air Arabia, and this is reflected in our robust financial results. Air Arabia has managed to sustain growth and announce record profits in 2008. Therefore, the board of directors has proposed distributing a 10 per cent cash dividend to the company’s shareholders, which allows them to share in Air Arabia’s success while maintaining sufficient capital to ensure the implementation of the carrier’s long-term growth strategy.”
He added, “2009 will see serious challenges to the worldwide aviation industry, driven by the impact of the global financial crisis and lower levels of consumer confidence. This uncertainty about the future will place additional pressure on the bottom lines and earnings expectations of airlines across the globe.”
In 2008, Air Arabia introduced seven new destinations, and now serves 44 destinations across the Middle East, North Africa, Indian Subcontinent, Eastern Europe and Central Asia.
A new hub in Morocco is due to start operations by the end of first quarter of 2009, a 300 room budget hotel is to be introduced and the latest news from Air Arabia is that it will launch a service to Athens, Greece, starting April 21. Roundtrip flights will operate three times per week between Athens Eleftherios Venizelos International Airport and Air Arabia’s hub in Sharjah. Air Arabia is the first LCC in the Middle East to commence operations to Athens.