Air Arabia Posts AED 266 Million Net Profit In First Quarter Of 2024 Amidst Expansion

Air Arabia has disclosed its financial and operational performance for the first quarter of 2024, showcasing a robust outcome despite facing several market challenges. The airline reported a net profit of AED266 million for the quarter ending March 31, 2024. This figure represents a 22 percent decrease from the AED 342 million recorded in the same period in 2023. However, the airline's turnover saw an 8 percent increase, reaching AED 1.54 billion compared to the first quarter of last year.

The carrier experienced a significant uptick in passenger numbers, with more than 4.4 million passengers flying with Air Arabia Group between January and March 2024. This marks a 13 percent increase from the 3.9 million passengers carried in the first quarter of the previous year. Additionally, the airline maintained an impressive average seat load factor of 85 percent during this period.

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, commented on the results, highlighting the airline's commitment to operational excellence and delivering value-driven products to customers. He acknowledged the impact of economic and geopolitical uncertainties, seasonality, fuel price volatility, currency fluctuation, and supply chain challenges on the business but remained optimistic about overcoming these hurdles.

The first quarter's net profit was attributed to strong passenger demand and revenue growth, despite being affected by various factors including the seasonality shift during Ramadan, higher fuel prices, currency fluctuations in key markets, and inflationary costs due to ongoing supply chain challenges.

Al Thani further emphasized the airline's growth plans for 2024 and confidence in the low-cost travel industry's prospects. Air Arabia aims to continue exploring new opportunities to expand its value-driven product to a wider customer base.

During the first three months of 2024, Air Arabia introduced two new routes from its operating hubs in the UAE, Morocco, Egypt, and Pakistan. The airline operates a modern fleet of 74 Airbus A320 and A321 aircraft. It was also ranked third-highest in operating margin worldwide according to the ‘Airline Weekly’ World’s Most Profitable Airlines index.

In March, Air Arabia shareholders approved a 20% dividend distribution at the carrier’s Annual General Meeting for the year 2023. The airline reported liquidity standing at AED5 billion in cash and cash equivalents for the first quarter of 2024, indicating a strong financial position amidst ongoing market challenges.

With inputs from WAM