Air Arabia reports Dhs427m profit in Q2

Air Arabia, the Middle East and North Africa’s first and largest low-cost carrier (LCC) operator, on Monday announced strong financial and operational results for the second quarter and first half of 2024, as the airline continued to expand its network, further solidifying its leadership position in the market. Air Arabia reported a net profit of Dhs427 million during the second quarter ending June 30, 2024; 7 percent lower than the Dhs459 million recorded in the same period in 2023.

The airline achieved a turnover of Dhs1.65 billion, marking a 19 percent increase compared to the second quarter of last year. Between April and June 2024, over 4.5 million passengers traveled with Air Arabia Group across its operating hubs, reflecting a 19 per cent increase from the 3.8 million passengers carried in the same quarter of the previous year. The airline’s average seat load factor — representing the percentage of available seats occupied — rose by 3 per cent, reaching an impressive 79 per cent during the second quarter of 2024.

Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: “The solid net profit recorded in the second quarter was driven by robust passenger demand and revenue growth, underscoring the strong fundamentals of our business and the enduring appeal of our value-driven offerings to customers.”

He continued: “Despite the robust passenger demand, the aviation industry continued to experience slower yield growth and rising costs during the second quarter of this year, driven by economic and geopolitical uncertainties, currency fluctuations, fuel price volatility, and supply chain disruptions that have led to increased inflationary pressures.