Air Arabia, the Mena region’s first and largest low-cost carrier, has released its financial results for the 12 months ending December 31, 2009, demonstrating continued profitability and very high levels of efficiency during an enormously challenging period for airlines worldwide.
Net profit for the period stood at Dh452 million ($123 million), sustaining 2008’s strong performance of Dh454 million (excluding exceptional items). For the full-year 2009, the company registered a turnover of Dh2 billion, a decline of 4.5 per cent from Dh2.066 billion recorded in 2008.
The airline served 4.1 million passengers in 2009, an increase of 14.2 per cent compared to 3.6 million passengers in 2008. In the 12 months ending December 31, Air Arabia’s average seat load factor – or passengers carried as a percentage of available seats – stood at an impressive 80 per cent.
Commenting on the company’s results, Sheikh Abdullah Bin Mohammad Al
Thani, chairman of Air Arabia, said: “The previous 12 months represented one of the most challenging periods in the history of the global aviation sector as pressure on yields increased significantly as a consequence of the worldwide financial crisis. The associated overcapacity in the sector led to collective losses of roughly $11 billion for all global airlines, demonstrating the depth of the challenges facing our industry.
“During that time of great instability, Air Arabia nevertheless continued to chart a path to profitability and we are all very proud of the sustainable financial results announced today.
Based on the strength of our unique business model, the efficiency of our operations and a compelling value-for-money customer proposition, Air Arabia has been able to navigate the current challenges and invest in its long-term growth.”
Ranked first on the Top Performing Companies chart as the best low-cost carrier globally in a study conducted in 2009 by Aviation Week magazine, Air Arabia currently serves 59 destinations across the world from its hubs in Sharjah and Casablanca.
Last year, Air Arabia announced the signing of a joint venture agreement with the Travco Group to launch a new low-cost carrier based in Egypt, serving the Europe, Middle East and Africa markets and representing the carrier’s third hub after the UAE and Morocco.
Operations at the third hub in Egypt are anticipated to begin in the first half of 2010.