Air Arabia, the leading low-cost carrier operator in the Middle East and North Africa, announced its impressive financial and operational results for the first quarter of 2024. Despite a slight decrease in net profit compared to the previous year, the airline still reported a strong performance with a net profit of Dh266 million and a turnover of Dh1.54 billion, representing an eight per cent increase from the first quarter of 2023. More than 4.4 million passengers flew with Air Arabia during this period, marking a 13 per cent increase from the previous year, while the airline maintained an excellent average seat load factor of 85 per cent.
Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, credited the airline’s success to its dedication to operational excellence and commitment to providing value-driven products to customers. Despite challenges such as economic uncertainty, fuel price volatility, and supply chain disruptions, Air Arabia’s focus on profitability and efficiency enabled it to deliver solid financial and operational results. Al Thani expressed confidence in the airline’s ability to navigate market challenges, capitalize on new opportunities, and continue delivering value to customers and shareholders.
The first quarter net profit was driven by robust passenger demand and revenue growth, although it was impacted by seasonality shifts during Ramadan, higher fuel prices, currency fluctuations, and supply chain challenges leading to increased costs. Air Arabia remains optimistic about the future, maintaining its growth plans for 2024 and exploring new opportunities to expand its reach and offer value-driven products to a broader customer base. The airline added two new routes to its global network and continued to operate a modern fleet of 74 Airbus A320 and A321 aircraft.
In addition to its financial performance, Air Arabia was recently ranked third highest in operating margin worldwide at the ‘Airline Weekly’ World’s Most Profitable Airlines index, highlighting the airline’s strong position in the industry. Shareholders also approved a 20 per cent dividend distribution at the carrier’s Annual General Meeting for the year 2023, demonstrating the airline’s commitment to delivering returns to its investors. With a liquidity of Dh5 billion in cash and cash equivalents for the first quarter of 2024, Air Arabia is well-positioned to navigate market challenges and pursue growth opportunities.
Overall, Air Arabia’s strong financial and operational results for the first quarter of 2024 reflect its resilience in the face of industry challenges and its ability to adapt to changing market dynamics. With a focus on profitability, efficiency, and customer value, the airline continues to strengthen its position as a leader in the low-cost travel industry. By expanding its network, enhancing its fleet, and exploring new opportunities, Air Arabia is well-equipped to navigate the current aviation landscape and capitalize on growth prospects.
