Air Arabia, a low-cost carrier (LCC) in the Middle East and North Africa, has announced its financial results for the nine months ending September 30, 2018, demonstrating high levels of profitability and solid operational metrics.
During the first nine months of 2018, Air Arabia registered a turnover of 3 billion, 8 per cent increase compared to AED 2.8 billion registered during the same period last year. Net profit for the first nine months of this year stood at 530 million, 17 per cent lower than the net profits recorded for the corresponding period in 2017. Air Arabia’s robust financial performance was recorded despite the strong impact of high oil price and currency devaluation on the industry’s bottom line.
Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, says: “Supported by strong revenue figures and passenger demand; Air Arabia’s net profit for the third quarter and year to date remained strong despite profit margins being impacted by the sharp rise in fuel price and the currency devaluation witnessed in several key travel markets.”
He continues: “The global economic outlook remains under renewed pressure and airlines worldwide have been challenged by pressured yield margins and increase in cost structure while political and economic tensions continue to drive currency and oil price volatility. We believe that such impactful challenges are temporary and the long term outlook for the low cost travel in the region remains fundamentally strong.”
Revenue for the third quarter ending September 30, 2018, stood at AED 1.28 billion, a 10 percent increase compared with AED 1.16 billion in the same period of 2017. Net profit in the third quarter of 2018 reached AED 300 million, 20 per cent lower than the corresponding 2017 figure. More than 2.4 million passengers were served in the third quarter of 2018, a 5 per cent increase on the corresponding period of 2017, while the average seat load factor stood at an impressive 81 per cent.
Air Arabia grew its global network year to-date to exceed 150 destinations worldwide served from multiple hubs spread across the UAE, Morocco and Egypt, with a fleet of 53 aircraft, and plans for further expansion in 2019. Air Arabia recently celebrated 15 years of successful operations in October this year.