Text size:

  • Small
  • Normal
  • Large
The Sharjah-based airline has continued to build on its strong performance last year.Pawan Singh / The National
The Sharjah-based airline has continued to build on its strong performance last year.Pawan Singh / The National

Air Arabia posts 20 per cent rise in profits

Sharjah-based airline has reported net profit of Dh59 million in first quarter on the back of a 22 per cent jump in revenue as it carried a record 1.4 million passengers.

Air Arabia, the UAE's publicly-listed budget airline, yesterday reported a 20 per cent rise in first-quarter net profit on the back of a 22 per cent jump in revenue.

The Sharjah-based airline's financial results for the three months ending March 31 showed it continued to build on its strong performance last year.

Net profit for the first three months of the year was Dh59 million, compared with Dh49m in the same period a year ago, Air Arabia said. Revenue for the quarter was Dh722m, up from Dh594m. Passenger traffic during the period rose 18 per cent.

The airline carried a record 1.4 million passengers in the first quarter of this year, the highest number of passengers handled in a quarter since its launch in 2003. The average seat load factor - or passengers carried as a percentage of available seats - was 82 per cent. "Air Arabia continues to set a benchmark for the low-cost carrier model as well as for the wider aviation sector in the region," said Sheikh Abdullah bin Mohammad Al Thani, the chairman of Air Arabia.

"The airline is on a steady growth trajectory. The sustained profitability and solid growth margins [will] enable Air Arabia to enter new geographies and launch new ventures."

Air Arabia took delivery of two aircraft from Airbus during the first quarter. The airline will receive four more A320 aircraft this year, which is in line with its plan to expand its geographic network and increase the size of its fleet by 2016. The airline also launched four new destinations from its primary hub in Sharjah and increased the frequency of flights to Beirut, Salalah and Dhaka.

Air Arabia reported in February it had made a net profit of Dh425m for the full year ending December 31, 2012, compared with Dh274m reported for a year earlier.

The airline's turnover for the full year 2012 stood at Dh2.9 billion, compared with Dh2.4bn registered in 2011. Air Arabia also said it carried more than 5.3 million passengers last year, registering a 13 per cent increase compared with 4.7 million passengers in 2011.

Last week, Air Arabia's shares surged to the highest level in more than three years after an announcement from the Arabian Travel Market exhibition in Dubai that the emirate plans to double its number of visitors to 20 million by 2020 and triple annual revenue from the travel industry to Dh300bn.

 

dblack@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National