Air Arabia’s Q2 profit soars 187% on higher turnover

Air Arabia

Air Arabia reported a 187 percent rise in net profit to AED459 million ($124.97 million) in the second quarter of 2023, compared to AED160 million a year earlier.

The higher profit was due to a one-off receivable from one of its suppliers, the airline said in a statement.

Turnover for the quarter ending June 30, 2023, increased by 25 percent year on year to AED1.39 billion as strong demand for air travel continued.

Over 3.8 million passengers flew with the Sharjah-based carrier between April and June 2023 across its seven hubs, an increase of 37 percent year on year. The average seat load factor, or passengers carried as a percentage of available seats, stood at 76 percent.

During the first half of 2023, the airline reported a net profit of AED801 million, an increase of 78 percent, compared to AED451 million a year earlier.

Turnover rose 26 percent year on year to AED2.82 billion. More than 7.7 million passengers travelled, up 47 percent annually. The average seat load factor was 81 percent in the first six months.

Sheikh Abdullah Bin Mohamed Al Thani, chairman of Air Arabia, said that the carrier’s steady performance in the first quarter continued to the second quarter underlining the consistency of its growth strategy.

He added: “Throughout the first half of 2023, Air Arabia remained committed to its strategic expansion plan by strengthening the fleet size, adding new routes and new frequencies across all seven operating hubs.

“Our organic approach of network expansion not only strengthened our connectivity but has also unlocked new opportunities for our passengers”.

Air Arabia added three new aircraft to its fleet, bringing it to 71 owned and leased Airbus A320 and A321 aircraft. 

The carrier has expanded its network by launching 18 new routes across its seven operating hubs in the UAE, Morocco, Egypt, Armenia and Pakistan.