Air Arabia Q3 net profit slips 5.6%

Low cost carrier Air Arabia's third-quarter net profit declined 5.6 per cent but the results still beat analysts' expectations.

Air Arabia said it earned profit of Dh136 million ($37.03m) for the three months ended September 30, down from Dh144m in the prior-year period.

The company, which had a 44 per cent decline in second quarter profits, cited rising passenger traffic and higher seat load factors for the improvement quarter over quarter.

Seven analysts forecast average profit of Dh90.99m in a Reuters survey in October.

Revenues rose four per cent to Dh568m.

Average seat load factor -- passengers carried as a percentage of available seats -- grew 8.5 per cent to 84 per cent.

Air Arabia, set up in 2003 in Sharjah, has a hub in Morocco and launched operations in its third hub in Egypt this year.

Chief Executive Adel Ali said on Monday he expected to launch the carrier's fourth hub in Jordan in 2011.

The airline announced in June the launch of Jordan's first low-cost carrier as part of its expansion plans.

Air Arabia services 65 routes across Europe, the Middle East, Africa and Asia from its three hubs.

Air Arabia is under pressure from rivals, but also from bigger carriers trying to cope with a drop in international passenger travel.