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Air Arabia reports net profit of $123.1m
Low cost carrier Air Arabia has recorded a net profit of 452 million dirhams ($123.1 million) for 2009.
Published: 15 Feb 2010
Low cost carrier Air Arabia has recorded a net profit of 452 million dirhams ($123.1 million) for 2009.
For the full-year 2009, the company registered a turnover of $544 million, decline of 4.5 percent from $562 million recorded in 2008.
The airline served 4.1 million passengers in 2009, an increase of 14.2 percent compared to 3.6 million passengers in 2008. In the 12 months ending December 31, 2009, Air Arabia’s average seat load factor – or passengers carried as a percentage of available seats – stood at an extremely impressive 80 percent.
Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, said: “The previous 12 months represented one of the most challenging periods in the history of the global aviation sector, as pressure on yields increased significantly as a consequence of the worldwide financial crisis. The associated overcapacity in the sector led to collective losses of roughly US$11 billion for all global airlines, demonstrating the depth of the challenges facing our industry.”
“During that time of great instability, Air Arabia nevertheless continued to chart a path to profitability,” he said.
Last year, Air Arabia announced the signing of a joint venture agreement with the Travco Group to launch a new low-cost carrier based in Egypt, serving the Europe, Middle East and Africa markets and representing the carrier’s third hub after the UAE and Morocco. Operations at the third hub in Egypt are anticipated to begin in the first half of 2010.
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