Air Arabia Achieves AED 693 Million Net Profit In First Half Of 2024

Air Arabia (PJSC), the largest low-cost carrier in the Middle East and North Africa, has announced impressive financial and operational results for the second quarter and first half of 2024. The airline's network expansion efforts have further cemented its market leadership.

In the second quarter ending June 30, 2024, Air Arabia reported a net profit of AED 427 million, which is a 7 percent decrease from AED 459 million in the same period in 2023. However, the airline achieved a turnover of AED 1.65 billion, marking a significant 19 percent increase compared to last year's second quarter.

Between April and June 2024, over 4.5 million passengers flew with Air Arabia Group across its operating hubs. This represents a notable 19 percent increase from the 3.8 million passengers carried during the same quarter last year. The airline's average seat load factor also rose by 3 percent, reaching an impressive 79 percent during this period.

For the first half of 2024 (January to June), Air Arabia reported a net profit of AED 693 million, reflecting a 13 percent decrease from AED 801 million recorded in the same period in 2023. The airline achieved a turnover of AED 3.19 billion during this period, marking a substantial 13 percent increase compared to AED 2.82 billion registered in the first half of last year.

Throughout the first half of the year, Air Arabia added three new aircraft to its modern fleet, bringing it to a total of 77 owned and leased Airbus A320 and A321 aircraft. During this period, the carrier expanded its network by launching 16 new routes across its operating hubs in the UAE, Morocco, Egypt, and Pakistan.

Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, commented on these results: "The solid net profit recorded in the second quarter was driven by robust passenger demand and revenue growth, underscoring the strong fundamentals of our business and the enduring appeal of our value-driven offerings to customers."

Challenges and Resilience

Despite robust passenger demand, Sheikh Abdullah noted that the aviation industry faced slower yield growth and rising costs due to economic uncertainties, currency fluctuations, fuel price volatility, and supply chain disruptions leading to increased inflationary pressures. He stated: "Air Arabia’s ability to sustain its growth momentum and achieve such solid profitability amidst these challenges reflects the resilience of our business model and the strength of our management team."

In March, Air Arabia was ranked third highest operating margin worldwide at Airline Weekly’s World’s Most Profitable Airlines index. The airline's liquidity for the first half of 2024 stood at AED 4.8 billion in cash and cash equivalents.

Sustainability Initiatives

As part of its commitment to environmental responsibility, Air Arabia has fully implemented a circular economy approach for all in-flight service items ensuring they are biodegradable. Additionally, all food and beverage packaging and containers are now fully recyclable. This initiative underscores Air Arabia's comprehensive strategy to integrate environmental stewardship into its core operations.

Sheikh Abdullah concluded: "Throughout the first half of 2024, Air Arabia remained steadfast in executing its expansion plan by expanding fleet size, launching new routes, and increasing flight frequencies across all operating hubs. As we navigate the remainder of the year, we remain committed to driving business growth, seizing new opportunities, and reducing costs while continuing to deliver exceptional value to our customers."

With inputs from WAM