Air Arabia Q2 net up 14.4%

Air Arabia, the Middle East's biggest budget carrier, posted a 14.4 per cent rise in second-quarter profit, bucking a global industry downward trend but missing analysts' forecasts as oil prices soar.

Net profit in the three months to June 30 rose to Dh82 million, compared with Dh71.7m a year ago, the company said in a statement.

Airlines across the world have been hard hit by oil prices that have risen more than six-fold since 2002, with some of the biggest carriers posting steep falls in profits or even losses.

Gulf Arab carriers have mitigated surging oil prices as they benefit from a regional economic boom and increased passenger traffic in the world's top oil-exporting region.

The Sharjah-based airline carried 866,272 passengers in the three months to June 30, up 34.1 per cent from a year ago, and introduced four new destinations in the first six months of the year, it said.

Turnover in the second quarter climbed to Dh487m compared with 272 million for the same period last year, it said.

Forecasts from four analysts for Air Arabia's second-quarter profit ranged from Dh77.5m to Dh131.25m in a Reuters survey in June.

Oil prices averaged $123.80 in the second quarter this year, compared with $65.02 in the corresponding period last year, according to Reuters data.

The company's shares have gained more than 24 per cent this year to Sunday's close, outperforming the benchmark index, which is down almost nine per cent.