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29 March 2024

Air Arabia Q2 profit jumps 128% to Dh173m

Published
By Staff

The low-cost carrier Air Arabia on Saturday announced net profit of Dh173 million for the second quarter of 2014 compared to Dh76 million reported in the corresponding period of 2013, registering an increase of 128 per cent.

Air Arabia posted a turnover of Dh915 million, an increase of 15 per cent compared to Dh797 million in the same period of 2013.

The airline served over 1.6 million passengers in the second quarter of 2014, an increase of 8 per cent compared to the 1.5 million passengers carried in the same period of last year. The airline’s average seat load factor – or passengers carried as a percentage of available seats – during the second quarter of 2014 stood at an impressive 84 per cent.

The 2014 second quarter financial results represent an all-time high for the airline and were driven by its unique and innovative business practices, especially its dynamic fuel management policy and unrelenting focus on cost management.

“Air Arabia’s outstanding start to 2014 has accelerated in the second quarter as the investments made into our operational capacity and cost management have continued to deliver results,” said Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia.

“We have seen an 11 per cent increase in capacity in the first half of this year, yet we have sustained a high average seat factor and seen first half turnover increase by 15 per cent. The average yield for the first half 2014 has also increased by 6 per cent, a record that is not only among the highest in the industry but that also reflects the true low cost management practices that Air Arabia follows.”

Air Arabia’s 2014 first half financial results have also exceeded analysts’ expectations reporting a net profit of Dh248 million for the first half ending June 30, 2014. This compares with Dh134 million in the corresponding period of 2013, an increase of 85 per cent.

The carrier’s turnover for the first half of 2014 stood at Dh1.74 billion, an increase of 15 per cent compared to Dh1.52 billion reported in the same period of 2013.

More than 3,366,046 passengers flew with Air Arabia in the first half of 2014, an increase of 11 per cent on the same period last year and another record for the company; while the average seat load factor for the first half of this year stood at an impressive 83 per cent.

“As we look to continue this momentum of business growth in the second half of the year, Air Arabia will remain focused on its ceaseless cost management operation and dynamic fuel management policies, while adopting new innovative services and measures that will add even more value to our customer-centric strategy. We look forward to serving many more passengers in the months and years to come,” concluded Al Thani.