Aviation

Air Arabia’s 2022 net profit soars 70% to $323m

By Pramod Kumar

February 14, 2023, 6:07 AM

Air Arabia served more than 12.8 million passengers in 2022, up 90 percent year-on-year

UAE-based low-cost carrier Air Arabia reported a net profit of AED1.2 billion ($326.70 million) for 2022, an increase of 70 percent, compared to AED720 million in 2021, driven by the growth in passenger numbers that exceeded pre-pandemic levels.

The airline’s turnover reached AED5.2 billion in 2022, an increase of 65 percent, compared to AED3.2 billion in 2021.

Air Arabia served more than 12.8 million passengers last year from its seven hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan, an increase of 90 percent from 6.8 million passengers in 2021.

The average seat load factor, or passengers carried as a percentage of available seats, for the full year stood at 80 percent.

The airline’s board of directors proposed a dividend distribution of 15 percent, or 15 fils per share, for 2022, subject to ratification by shareholders at the upcoming annual general meeting.

Sheikh Abdullah Bin Mohammad Al Thani, chairman of Air Arabia, said: “Air Arabia’s 2022 record profitability is considered the best in the company’s operating history. The remarkable operational and financial performance reflects the carrier’s robust business model, management team, and discerning growth strategy.

“Although 2022 continued to be challenging, the aviation industry has begun returning to normality as airlines and airports worldwide witnessed faster recovery following the drop in demand caused by the pandemic.”

He stated that Air Arabia Group maintained its robust growth in 2022 by increasing its fleet size and adding new routes across its global network.

The company launched the operations of its latest joint venture airlines in Armenia and Pakistan.

In the fourth quarter of 2022, Air Arabia reported a net profit of AED356 million, 24 percent less than the AED 467 million registered in the same quarter last year, despite record high yield margins and lower fuel prices.

The turnover for the last quarter of 2022 reached AED1.4 billion, an increase of seven percent compared to the same quarter last year.

Air Arabia added 24 new routes to its global network in 2022. The carrier also took delivery of 10 new aircraft, taking its fleet of 68 Airbus A320 and A321 aircraft operating over 190 routes across the Middle East, Africa, Asia, and Europe.