Air Arabia, the Middle East & North Africa’s first and largest low-cost carrier operator, has announced an all-time record AED1.32 billion ($359.39 million) net profit the first nine months ending September 30, 2023, an increase of 53 per cent compared AED867 million in the same period last year.

 

The revenues for the first nine months increased by 16 per cent reaching an impressive AED4.45 billion compared to AED3.84 billion for the same period of 2022.

 

Air Arabia also reported record profitability of AED522 million for the third quarter ending September 30, 2023, an increase of 26 per cent compared to the same period last year, while revenue for the third quarter 2023 reached an impressive AED1.63 billion. 

 

The low-cost carrier carried 12.4 million passengers in the nine months to September 2023, compared to 9.1 million passengers in the same period of 2022. Seat load factor hit 80%, an increase of 2%.

 

The airline has AED4.9 billion in cash and cash equivalent, the statement said. 

 

Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “Air Arabia maintained its robust growth in the first nine months of this year by expanding operations across its seven operational hubs and introducing new routes to enhance the carrier’s global network. The increase in capacity during this period was complemented by an impressive surge in passenger numbers, reaching a total of 12.4 million, and marking a remarkable 36 per cent increase compared to the first nine months of last year. Air Arabia remains unwavering in its commitment to diversify and expand its business, while simultaneously investing in innovative products that aim to enhance every aspect of our customers' journey."

 

Al Thani continued: “Air Arabia’s record performance in the third quarter of this year was driven by robust passenger demand and effective cost control measures implemented by the management team. The remarkable performance is a testament to Air Arabia’s operational and commercial strategy, demonstrating the company’s steadfast commitment to consistently providing genuine value to its customers.”

 

Nine-month Highlights

• Two leased Airbus A320 aircraft were added during the third quarter bringing the total fleet to 72 leased and owned Airbus A320 and A321.

• Four short-term leased Airbus A320 aircraft were added to Morrocco hub during the third quarter to support summer season operations. 

• Air Arabia added a total of 17 new routes to its global network in the first nine months 2023 bringing the total network size to 206 routes from seven operating hubs.

• The capacity available across all hubs increased by 33 per cent during the first nine months 2023 compared to the same period last year. 

• Full implementation of an Enterprise Resource Planning (ERP) to drive automation and efficiency.

• Rollout of Electronic Tech Logbook and upgrade of Electronic Flight Bag equipment to achieve a paperless and efficient process across operations.

 

Outlook

Al Thani concluded: “The demand for our value-driven product continues to be solid and we remain cautiously optimistic as we continue to navigate the ever-changing landscape of the current geopolitical and macroeconomic environment. Equally, we remain focused on innovation, efficiency, and cost control across the breadth of our operations.  While challenges persist in the near term, we have full confidence in the business model that we operate, our ability to continue driving growth, and our product offering that continuously delivers optimum value to our customer.” - TradeArabia News Service