Air Arabia Soars to Record Net Profit of AED1.5 Billion in 2023, Up 27%

Air Arabia (PJSC), the leading low-cost carrier (LCC) in the region, has reported a record-breaking net profit of AED 1.5 billion for the year ending 31st December 2023. This represents a significant 27% increase from the previous year's AED 1.2 billion. The airline's turnover for the same period reached AED 6 billion, marking a 14 percent rise from AED 5.2 billion in 2022. Following these results, Air Arabia’s Board of Directors proposed a dividend distribution of 20 percent of share capital, equivalent to 20 fils per share, pending ratification at the company’s upcoming Annual General Meeting.

Sheikh Abdullah bin Mohamed Al Thani, Chairman of Air Arabia, highlighted the airline's exceptional financial and operational results in 2023, attributing them to its robust business model, competent management team, and effective growth strategy. Despite global aviation industry challenges, Air Arabia expanded its operations across seven operational hubs and introduced 26 new routes within its global network in 2023. This strategic expansion led to an impressive 31 percent surge in passenger numbers across the group, reaching 16.7 million passengers.

In the fourth quarter of 2023, Air Arabia reported a net profit of AED 225 million, a decrease from the AED 356 million recorded in the same quarter last year. However, turnover for the last quarter increased by 11 percent to AED 1.54 billion, with a strong seat factor of 81 percent. Despite softer yield margins and ongoing supply chain challenges in the industry, Air Arabia maintained solid profitability and impressive growth in revenue and passenger numbers.

Al Thani emphasized Air Arabia's resilience and commitment to delivering genuine value to its customers, underlining the airline's effective operational and commercial strategy. The significant milestones achieved in terms of growth, revenue, and profitability underscore Air Arabia's position as a leader in the low-cost aviation market.

With inputs from WAM