Air Arabia profit up 25% on rising passenger demand

Sharjah-headquartered Air Arabia reported a 25.5 percent rise in profit in the third quarter of 2023, on robust passenger demand and effective cost control measures.

Net profit for the quarter ended September 30, 2023, rose to AED522 million ($142 million), compared to AED416 million a year ago.

Revenue for the period reached AED1.63 billion, recording a marginal increase of one percent year on year.

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Net earnings for the nine months jumped 53 percent year on year to AED1.32 billion, while revenue rose 16 percent annually to AED4.45 billion.

“Air Arabia maintained its robust growth in the first nine months of this year by expanding operations across its seven operational hubs and introducing new routes to enhance the carrier’s global network,” said chairman Sheikh Abdullah bin Mohamed Al Thani.

The increase in capacity was driven by a surge in passenger numbers to 12.4 million in the year to September, up 36 percent year on year.

The low-cost airline added 17 new routes to its global network in the first nine months of 2023, bringing the network size to 206 routes from seven operating hubs.

“The demand for our value-driven product continues to be solid and we remain cautiously optimistic as we continue to navigate the ever-changing landscape of the current geopolitical and macroeconomic environment,” Al Thani said.