Travel, Tourism & Hospitality

Air Arabia soars high with solid H1 net profit of $122.79m

Air Arabia, the Middle East & North Africa’s first and largest low-cost carrier operator, reported a strong first half 2022 with a net profit of AED451 million ($122.79 million), compared to AED44 million in H1 2021, as recovery in demand for air travel continued.
The airline posted a turnover of AED2.24 billion, a 110 per cent increase compared to the  first half of last year. More than 5.2 million passengers flew with Air Arabia between January and June 2022 across the carrier’s five hubs, an increase of 131 per cent compared to the same period last year. 
The airline’s average seat load factor – or passengers carried as a percentage of available seats – increased by 11 per cent during the first six months of 2022 and stood an average at 79 per cent. 
During the second quarter ending June 30, 2022, Air Arabia registered a net profit of AED160 million, compared to AED10 million net profit reported for the same period last year. The company’s turnover for the second quarter of 2022 increased by 125 per cent as demand for air travel increased registering an AED1.11 billion, compared to AED496 million in the corresponding period last year. 
More than 2.7 million passengers flew with Air Arabia between March and June 2022 across the carrier’s five hubs, an increase of 195 percent compared the same quarter last year. The airline’s average seat load factor increased by 13 per cent during the second quarter of 2022 and stood at an impressive average of 79 per cent. 
Sheikh Abdullah Bin Mohamed Al Thani, Chairman of Air Arabia, said: “The solid financial and operational performance registered in the first half of this year is a testament to the strength of the business model we operate and the appeal to the value driven product that Air Arabia offers to our customers. The strong performance we witnessed in the first quarter of this year continued in the second quarter and was supported by higher customer demand and cost control measures adopted by the management team.”
He added: “We have continued with our network expansion strategy in the second quarter of this year by increasing the fleet size, adding new routes and new frequencies across all operating hubs as well as continuing with preparations for the launch of our new ventures in Armenia and Pakistan. Air Arabia remains focused on diversifying and expanding its business while investing in product innovation and adopting further measures to control costs.”
Al Thani concluded: “The global aviation industry continues to face geo-political challenges, the impact of higher oil prices and uncertainty towards full economic recovery. Despite all these challenges, we have full confidence in the business model we operate, and the crucial role that the aviation industry plays in supporting regional and global economic growth.”  
During the first half of the year, Air Arabia added 6 new aircraft to its fleet and expanded its network by launching 16 new routes across its hubs in the UAE, Morocco, and Egypt. Air Arabia also unveiled the brand identity of its latest two ventures ‘Fly Arna’ and ‘Fly Jinnah’ in Armenia and Pakistan, respectively. 
In June, Fly Arna received it Air Operating Certificate and in July, the carrier celebrated the launch of its operations with direct flights connecting Yerevan to Hurghada and Sharm el-Sheikh in Egypt. -TradeArabia News Service