Subscribe Free
in Business & Finance

Air Arabia reports strong first quarter net profit of AED114 million, up 34%

Posted 9 May 2016 · Add Comment

Air Arabia has reported strong financial results for the first quarter of 2016 exceeding analyst expectations as the Middle East's first and largest low cost carrier continued to deliver outstanding performance and attract new customers.


Air Arabia reported a net profit of AED114 million for the three months ending March 31, 2016, 34 percent higher than the corresponding 2015 figure of AED85 million. In the same period, the airline posted a turnover of AED946 million, an increase of 7 percent on AED886 million in the first quarter of last year. 

The airline flew more than 2.1 million passengers between January and March 2016, up 17 percent on the corresponding period of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2016 stood at an impressive 81 per cent. 

Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia, said: “Air Arabia has made an excellent start to 2016, maintaining the momentum we established last year and attracting new customers to our brand. Our operational efficiency allied to the success of our route expansion strategy and the popularity of our value-add service proposition, leaves Air Arabia well placed to navigate the current macroeconomic challenges and benefit from the many opportunities in the region’s aviation sector.”   

Analyst Saj Ahmad commented: “A rise in profits to AED114m over the same period a year ago highlights the robustness and vibrancy of the low cost travel market that has centred in the UAE for the wider GCC - as one of the first low cost airlines, Air Arabia has managed to leverage the strength of its Sharjah hub to lure in most cost-savvy fliers which in turn has fed load factors to over 81% across its fleet and network. 

“Air Arabia's continued expansion into central Europe has allowed the airline to tap into new growth markets and connect new city pairs that previously didn't exist and also helps mitigate against fluctuations in regional demand, which in some markets has been strained or challenging given the active theatres in Syria, Lebanon, Yemen and disruptive development in other areas like Egypt, Jordan and Saudi Arabia.” 

Ahmad added: “It's a brilliant start to the year for Air Arabia, notwithstanding the benefit of a lower fuel price environment - however airline will soon have make choice between the 737MAX and A320neo if it wants to maintain its growth trajectory and not fall behind flydubai, which already has orders in place for up to 100 737 MAX 8s.”

* required field

Post a comment

Other Stories
Advertisement
Latest News

Operations from the ground up

Keith Mwanalushi looks at the expansion of ground support operators and equipment in the Middle East region as the pressure mounts to remain competitive and maintain commercial viability.

Emirates announces A380 service to Nice and adds Monaco transfers by helicopter

Emirates Airlines has launched a daily A380 service to Nice, gateway to the French Riviera and Provence. The daily A380 service will start on July 1, 2017.

Etihad Airways and Norlands celebrate the 2000th Flying Nanny

Etihad Airways has celebrated the graduation of its 2000th Flying Nanny, continuing its relationship with Norland, the respected UK-based higher education college which specialises in 'early years' education.

UK bans passengers from Queen Alia Airport from carrying laptops, tablets and large phones

The UK authorities issued new rules that ban passengers on flights from Queen Alia International Airport and other airports in the region departing to London from carrying laptops and tablets in the aircraft cabin, in addition to the

Emirates expects busy spring break travel period

Emirates expects high passenger traffic on its flights this upcoming weekend starting from Thursday 23rd March as travellers head abroad for spring and holiday break. Over 89,000 travellers will be passing through Emirates Terminal 3

Qatar Airways welcomed Orbis Flying Eye Hospital to Doha

Qatar Airways welcomed Orbis Flying Eye Hospital to Doha with an official reception at Doha International Airport (DIA).

TAA
See us at
Aeropodium BT2802240417Kuwait APADS BT1602270317EBACE17 BT0103240517