Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, reported a 44 percent decline in second-quarter profit. Net income fell to 50 million dirhams ($14 million) from 90 million dirhams in the year-earlier period.

Published: 09 Aug 2010

Air Arabia, the first and largest low-cost carrier (LCC) in the Middle East and North Africa, reported a 44 percent decline in second-quarter profit. Net income fell to 50 million dirhams ($14 million) from 90 million dirhams in the year-earlier period.

The airline stated that this decline in profitability was in line with global industry performance, which continues to be impacted by changing market dynamics, characterised by increase in fuel costs and continuous pressure on yield margins.

In the second quarter of this year, Air Arabia posted a turnover of AED 485 million, an increase of six percent compared to AED 458 million in the same period of 2009.

The airline served 1,108,310 passengers in the second quarter of 2010, an increase of 11 percent compared to 1,002,394 passengers in the same period last year. In the three months ending June 30, 2010, Air Arabia’s average seat load factor – or passengers carried as a percentage of available seats – stood at an impressive 82 percent, an increase of four percent compared to same period of 2009.

In the second quarter of 2010, the airline launched operations from its third hub in Alexandria, Egypt. Air Arabia currently offers service to 65 routes across Europe, the Middle East, Africa and Asia from three hubs in UAE, Morocco and Egypt. The low-cost carrier also announced the formation of Jordan’s first low-cost carrier in a joint venture with Tantash Group.