Air Arabia Q3 profit up as turnover rises 10%

Air Arabia

Net profit at Air Arabia rose 8 percent year on year to AED564 million ($153.6 million) in the third quarter of 2024, the Sharja-based airline has revealed, as it added new aircraft and routes.

Turnover was AED1.8 billion, up 10 percent compared to the same period last year, while passenger numbers rose 8 percent year on year to 5.1 million.

The average seat load factor, representing the percentage of available seats occupied, increased to 81 percent.

The aviation industry continued to face geopolitical and economic challenges in the third quarter, as airlines navigated airspace restrictions in parts of the region, leading to route adjustments and in some cases, flight suspensions, said chairman Sheikh Abdullah Al Thani.

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At the same time, the industry continued to manage inflationary pressures prompted by the ongoing supply chain challenges, currency fluctuations, and fuel price volatility, he said.

“Despite these factors, we expanded our network, increased operating capacity, and maintained a strong operating margin,” the chairman said.

In the first nine months of 2024, Air Arabia reported a net profit of AED1.25 billion, down 5 percent from AED1.32 billion for the same period in 2023. However, revenue rose 12 percent year on year to AED4.9 billion.

During this period, more than 14 million passengers travelled across its hubs, up 13 percent year on year.  

Liquidity for the first nine months stood at AED4.9 billion in cash and cash equivalent.

Air Arabia added six new aircraft, bringing its fleet size to 77 owned and leased Airbus A320 and A321 aircraft. The airline launched 22 new routes across its operating hubs in the UAE, Morocco, Egypt, and Pakistan.