Air Arabia records net profit of Dhs720 million

Staff Reporter, Gulf Today

Air Arabia, the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, on Monday announced a record financial results for the fourth quarter and for full year ending 31 December 2021, despite the prevailing impact of COVID-19 pandemic that continued throughout the year.

Air Arabia reported a net profit of Dhs 720 million for the full year ending December 31, 2021, an increase of 475 per cent compared to Dhs 192 million net loss registered for the full year 2020, which was heavily impacted by COVID-19 pandemic restrictions on air travel. The airline’s turnover for the full year 2021 reached Dhs 3.17 billion, an increase of 71 per cent compared to the Dhs1.85 billion registered for the full year 2020.

The financial and operational results achieved in 2021 were backed by ease of travel restrictions and recovery in demand for air travel. Air Arabia served more than 6.7 million passengers in 2021 from its five hubs in the UAE, Morocco and Egypt, an increase of 54 per cent compared to the 4.3 million passengers carried last year. The average seat load factor – or passengers carried as a percentage of available seats – for the full year remained strong at 73 per cent.

Air Arabia’s Board of Directors proposed a dividend distribution of 8.5 per cent of share capital, which is equivalent to 8.5 fils per share. This proposal was made following a meeting of the board of directors of Air Arabia and is subject to ratification by Air Arabia’s shareholders at the company’s upcoming Annual General Meeting.