Air Arabia Reports AED 693 Million Net Profit for H1 2024 Amid Expansion and Passenger Growth

Air Arabia, a Middle East and North Africa’s biggest LCC, has released healthy financial and operating figures for the first half of 2024 although profit margin shrunk slightly. Announcing its financial results for the period up to June 30, 2024, the Sharjah-based airline reported a net profit of 693 million UAE dirhams ($188. 5 million), down 13 percent from 720 million UAE dirhams ($196. 4 million) in the same period of the previous year. Sustaining this performance over the years established Air Arabia’s business model as quite capable of manoeuvring through persistent economic and geopolitical hurdles.

Air Arabia’s turnover in the first half of 2024 was AED 3. 13 billion, up from AED 2 billion of the same period a year earlier and a 13 percent rise. 82 billion in the first half of H1 2023. This growth was presided over by a healthy passengers traffic which stood at above eight. 9 million passengers passing through the airports of UAE, Morocco, Egypt and Pakistan — 16 per cent higher than in the same three quarters of the previous year. The average seat load factor of the airline was still strong at 81% showing that majority of the seats of the aircrafts were filled.

In the second quarter of the year, Air Arabia stated a net profit of AED 427 million, a very small decline from what the airline posted in Q2 2023 which was AED 459 million. However the turnover of the airline for Q2 2024 was AED 1. 19 million shrieking a rise of 19% from the previous year. 65 billion. Over 4. Air Arabia Q2 passenger traffic up 19% to 5 million In the second quarter of 2024, 5 million passengers flew with Air Arabia, up 19% compared to the same period in the previous year. For this quarter, the average seat load factor was also increased; it makes 79%.

The Chairman of Air Arabia, Sheikh Abdullah Bin Mohammad Al Thani said that the achievement of the solid net profit was due to strong passenger and revenue streams. He pointed out that although similar to other airlines, the Air Arabia has faced different challenges for instance increased costs and slower yield growth, the company has been able to sustain its profitability which he attributed to management efficiency and strategic business model.

Subsequently, to support its expansion plans, Air Arabia incorporated three new airplanes into the fleet and a total of 77 Airbus A320 and A321 airplanes. The airline also initiated 16 new routes in H1 2024.