Air Arabia turnover rises despite challenges

UAE low-cost airline Air Arabia said turnover registered a double-digit growth in the first quarter of 2025 despite fuel price volatility, currency fluctuations and supply chain challenges.

Revenue rose 14 percent year on year to AED1.8 billion ($490 million), as passenger volume increased 11 percent annually to nearly 5 million, the Sharjah-headquartered airline said in a statement to the Dubai Financial Market (DFM).

Net profit reached AED355 million in the first quarter, up 34 percent from AED266 million a year earlier, supported by effective cost control and operational efficiency.

Total operating fleet expanded to 83 Airbus A320 and A321 aircraft, with two Airbus A320 aircraft added in January. The average seat load factor – passengers carried as a percentage of available seats – hit 84 percent during the period.

Seven new routes were added to its global network in the first quarter, bringing the total network to 217 routes from all six operating hubs. The total seat capacity available across all hubs increased by 11 percent year on year.

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Chairman Sheikh Abdullah Bin Mohammad Al Thani said the airline is focused on expanding connectivity and exploring new market opportunities.

“Our confidence in the low-cost business model remains strong,” he said.

The airline’s share closed 0.3 percent higher at AED3.50 on Tuesday on the DFM. Sharjah Asset Management, the investment arm of the Sharjah government, owns 18.55 percent of the airline, with the free-float at 55.28 percent.