UAE-based budget carrier Air Arabia has reported a 9 per cent drop in third-quarter net profit on Monday, missing analyst forecasts.

The Sharjah-based carrier made a net profit of Dh206 million ($56 million) in the third quarter, compared with Dh226 million in the corresponding period in 2012, the company said in an emailed statement.

Three analysts polled by Reuters had forecast profit of Dh241.3 million for the quarter.

Commenting on the results, chairman Sheikh Abdullah Bin Mohammed Al Thani said: "Air Arabia is pleased to announce yet another nine months of solid financial performance, achieved despite the continued political instability affecting the regional travel market. From our foundation, through the listing of the company on the DFM, to today when the low cost travel market celebrates a decade of success, delivering value for all our stakeholders has been at the heart of our strategy."

"Air Arabia’s robust financial performance, a function of our high seat load factor and operational excellence, further reflects the airline’s continued focus on generating profitable growth through innovation and excellent services," he noted.

The low-cost carrier cited a seasonal slowdown in travel during Ramadan, which was from July to August this year. Revenue reached Dh854 million, an increase of 6 percent from a year ago.

Air Arabia carried 1.5 million passengers in the quarter, an increase of 11 percent year-on-year, said the top official.

Sheikh Abdullah said as Air Arabia marks its tenth anniversary, the airline will increasingly focus on its business expansion strategy, whilst continuing to introduce innovative low-cost travel solutions that have benefitted nearly 40 million passengers that we have served since inception. I look forward to reporting another period of growth and value for all our stakeholders at the year end.”-Reuters and TradeArabia News Service