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Air Arabia reports net profit of Dh266 million in Q1-24

Air Arabia reports net profit of Dh266 million in Q1-24
13 May 2024 21:01

SHARJAH (WAM)

Air Arabia on Monday reported a strong first quarter 2024 financial and operational results, as the airline continued to expand its network and further strengthening its leadership position in the market.

The airline reported a net profit of Dh266 million for the first three months ending March 31, 2024; 22 percent lower than the Dh342 million registered in the corresponding quarter of last year.

During the same period, the airline posted a turnover of Dh1.54 billion, an eight percent increase compared to the first quarter of 2023.

Over 4.4 million passengers flew with Air Arabia Group between January and March 2024 across the carrier’s operating hubs, an increase of 13 per cent compared to a total of 3.9 million passengers carried in the first quarter of last year, while the airline’s average seat load factor – or passengers carried as a percentage of available seats – during the first three months of 2024 stood at an impressive 85 percent.

Chairman of Air Arabia, Sheikh Abdullah Bin Mohammad Al Thani, commented, “Air Arabia's strong financial results achieved in the first three months of this year reflect our unwavering dedication to operational excellence and our commitment to continuously delivering value-driven product to our customers.”

“Despite the ongoing economic and geo-political uncertainty, seasonality impact on our business, fuel price volatility along with currency fluctuation and supply chain challenges, our focus on driving profitability and maintaining an efficient operation has enabled us to deliver solid financial and operational results. We are confident in our ability to navigate through market challenges and capitalise on new opportunities, while ensuring we continue to deliver the best value for our customers and shareholders," he added.

Q1's net profit achieved was driven by robust passenger demand and revenue growth.

These results were also impacted by the seasonality shift during the month of Ramadan, higher fuel price, currency fluctuations in key markets, and ongoing supply chain challenges that contributed to higher inflationary costs across the industry.

“As we navigate the current geo-political challenges and the prolonged supply chain disruptions that the global aviation industry continues to face, we remain steadfast in our growth plans for 2024, building upon the strength of the business model we operate. We are confident about the prospects of the low-cost travel industry while we continue exploring new opportunities that will allow us to expand the reach of our value-driven product to a broader customer base,” Al Thani explained.

The airline added two new routes to its global network from its operating hubs in the UAE, Morocco, Egypt, and Pakistan during the first three months of 2024, serving passengers with its modern fleet of 74 new Airbus A320 and A321 aircraft.

Air Arabia was ranked third-highest operating margin worldwide at the ‘Airline Weekly’ World’s Most Profitable Airlines index.

In March, Air Arabia shareholders approve 20 percent dividend distribution at the carrier’s Annual General Meeting for the year 2023.

The airline liquidity for the first quarter 2024 stood at Dh5 billion in cash and cash equivalent.

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