Air Arabia shareholders approve 20% dividend distribution for ’23
- 15 Mar 2024
Air Arabia shareholders approved the distribution of a 20 per cent cash dividend for the financial year ended 31st December, 2023 (FY2023), at the company’s Annual General Meeting (AGM). The dividend, which is equivalent to 20 fils per share, underscores another year of record financial performance for the award-winning low-cost carrier.
The Board of Directors’ recommendation follows the airline’s robust financial performance in FY2023, where Air Arabia reported a record net profit of Dhs1.5 billion, an increase of 27 per cent compared to 2022.
During the AGM, the report of Air Arabia’s auditors, balance sheet, as well as profit and loss accounts were approved by the assembly for FY2023.
Sheikh Abdullah Bin Mohammed Al Thani, Chairman of Air Arabia, said, “Amidst the challenges of the global aviation landscape, Air Arabia’s resilience and strategic foresight have propelled us to yet another year of remarkable performance during 2023. The notable achievements in terms of expansion, revenue, and profitability underscore the strength of Air Arabia’s business model, adept management team, and successful growth strategy. Our dedication to innovation, efficiency, and customer-centricity remains unwavering, driving sustainable growth and shareholder value.” In 2023, Air Arabia added 26 new routes to its global network from its operating seven hubs in the UAE, Morocco, Egypt, Armenia, and Pakistan. The carrier took delivery of 10 new aircraft and ended the year with a fleet of 73 Airbus A320 and A321 aircraft operating across over 206 routes across the Middle East, Africa, Asia, and Europe.
Air Arabia has recently opened its newest City Check-in facility in Dubai. The facility is located at City Centre Al Shindagha in the Al Fahidi area. This opening brings the total number of City Check-in facilities in the UAE to 12, spread across the country.
The new service allows customers to drop off their bags and obtain their boarding passes 24 hours before their flights and up to 8 hours before their scheduled departure time, providing them with greater convenience and flexibility. The new location will also include a convenient bus service connecting the Shindagha City Centre City Check-in facility with Sharjah International Airport which will start operating soon.
The new facility operates daily from 10:00 to 22:00.
Air Arabia (PJSC), the region’s leading low-cost carrier (LCC), soared to new heights in 2023, earning a record-breaking net profit of Dhs1.5 billion, marking a significant 27% increase compared to the previous year’s Dhs1.2 billion.
The company in its financial results for the full year ending 31st December 2023 stated that the airline’s turnover for the same period reached Dhs6 billion, reflecting a 14 per cent increase compared to the Dhs5.2 billion registered in 2022.
Sheikh Abdullah bin Mohamed Al Thani said, “2023 has been a remarkable year for the airline. Air Arabia has successfully maintained its growth momentum from the previous record-breaking year and achieved exceptional financial and operational results. The significant milestones attained in terms of growth, revenue, and profitability serve as a testament to Air Arabia’s robust business model, competent management team, and effective growth strategy.”
He continued, “Despite the numerous geopolitical and economic challenges faced by the global aviation industry, the Air Arabia group managed to sustain its strong growth in 2023. This was achieved through the increase of operating capacity and the addition of new routes across our global network from all our hubs. We take pride in the fact that Air Arabia’s value-driven product and services now cater to a broader customer base and reach more markets.”
In 2023, Air Arabia demonstrated its commitment to robust growth by expanding operations across its seven operational hubs and introducing 26 new routes within its global network. This strategic expansion resulted in an increase in operational capacity, which was further complemented by an impressive 31 percent surge in the number of passengers carried across the group, reaching a remarkable 16.7 million passengers.
In the fourth quarter ending 31st December 2023; Air Arabia reported a net profit of Dhs225 million, 37 per cent less than the Dhs356 million recorded in the same quarter last year, which had witnessed record high yield margins. The turnover for the last quarter of 2023 increased by 11 percent to reach Dhs1.54 billion and the seat factor for the quarter remained strong at 81 per cent.
Al Thani continued, “Despite the softening in yield margins during the last quarter of the year and the ongoing challenges in the industry’s supply chain, Air Arabia demonstrated resilience by registering a solid profitability while maintaining an impressive seat load factor and growth in revenue and passenger numbers. This outstanding performance serves as a testament to Air Arabia’s effective operational and commercial strategy, as well as its unwavering commitment to consistently delivering genuine value to its customers.”
